Luckin Coffee Reveals Findings of Its Internal Fraud Investigation
Scandal-plagued Luckin Coffee (OTC: LKNC.Y) has released details of its internal investigation into the fabrication of approximately $300 million in revenue. Former CEO Jenny Zhiya Qian and former COO Jian Liu, who have both already been replaced, were confirmed to be linked to the fraud. The investigation also found other employees who reported to the two executives, along with third parties, were involved in the sales-fabrication scheme.
The investigation included more than 60 witness interviews, and the review of over 550,000 documents, according to CNBC. It found that the fabrication of sales began in April 2019, and involved inflating costs and expenses by almost $200 million, as well as booking $300 million in false revenue.
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Source Fool.com