The household of Şemsi Erkman, business companion of Ektam Kıbrıs Ltd., one of many largest beverage corporations within the Turkish Republic of Northern Cyprus (TRNC), filed a multimillion lawsuit in opposition to PepsiCo Inc. alleging its officers knew a few billing firm reportedly inflating the invoices of Pepsi, a a number of Turkish media experiences indicated not too long ago.
The household filed a $95 million lawsuit in opposition to PepsiCo Inc. in New York, alleging that Güngör and Melih Sipahioğlu, with whom they’d a partnership, aided and abetted in a fraudulent billing scheme by producing faux invoices over a few years, thus depleting Ektam’s assets, a particular report by Sabah each day stated.
In the criticism submitted to the New York Supreme Court, it was acknowledged that an offshore shell firm referred to as Infima, owned by Güngör and Melih Sipahioğulları, had the only real objective of inflating Pepsi invoices by 50% for the good thing about the bulk shareholders of the bottling firm.
According to the criticism, Ektam Kıbrıs Ltd., based mostly in Lefkoşa, has been the only real bottler and distributor of Pepsi merchandise in TRNC since 1981.
It was talked about that the Erkman household owned 25% of the corporate, with the remaining shares being owned by Tamek Holding A.Ş., managed by Melih and Güngör Sipahioğlu.
It was described within the criticism that Ektam made funds for concentrated syrup the place water and carbonate had been added to make nonalcoholic drinks for Pepsi.
Melih Sipahioğlu, who’s alleged to have an in depth business relationship with Pepsi CEO Indra Nooyi, reportedly knowledgeable Ektam bottling firm officers that Pepsi needed to make use of Infima Holding NV for invoicing, with out disclosing to the Ektam board of administrators that Infima was an offshore shell firm owned by himself and his spouse Güngör, with no staff, workplaces or property.
The report additionally indicated that Sipahioğlu didn’t open up to Pepsi that an settlement had been made with Infima granting unique rights to the territories of the TRNC.
In the criticism, the Erkman household accused the Sipahioğlus of inflating invoices, siphoning $80 million from the bottling firm, and withholding $15 million yearly from minority shareholders as dividends. They additionally accused the minority shareholders of aiding and abetting Pepsi in fraud and breaching fiduciary responsibility.
The Erkman household filed a $95 million lawsuit in opposition to PepsiCo Inc. for allegedly aiding and abetting the fraudulent billing scheme. They claimed that Pepsi officers immediately inflated the beverage firm’s invoices by as much as 50% and funneled the cash to the house owners of Infima.
Source: www.dailysabah.com