Metal Engineering Company Faces Fraud Investigation

Engineering company Imperial Metal Industries (IMI) is facing an investigation by the US Department of Justice after it uncovered a multi-million pound kickback scandal at a Californian based subsidiary.

A team of forensic accountants led by Ernst & Young will investigate the scandal, according to reports in British newspaper The Times .

Shares in IMI plunged as analysts predicted the company could face hefty fines including legal costs.

IMI, who produce engineering equipment for the oil and gas and power industries around the world, says it has notified the relevant authorities of all its activities and will co-operate fully with any enquiry.

Reported by staff writer