3. Equitable Life’s Life Insurance Scandal
Loss: £1.5 billion
Year: 2000
Equitable life was a life insurance company which ceased its life when it was unable to pay the fine mentioned above after losing the court case. What they did was promise certain conditions and amounts to be paid which worked for them pretty well in one period, but when the economy trends changed (as they so often do), it ended up not being able to pay the clients what they deserve. The clients were mostly retired citizens, and some of them are still fighting to get some consolation money. The downfall was hard for a company which was originally founded in 1762. Now, let’s see the top two entries on the list of biggest recent accounting scandals in UK.
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