ComplianceOne Reportedly Enters Insolvency Due to Financial Difficulties

ComplianceOne Group, a provider of compliance solutions to gambling operators, is entering insolvency, according to NEXT.io. The company’s chief executive attributed the development to the fact that his company had failed to secure enough contracts.

CEO Antonio Zanghi told NEXT.io that his team will no longer be able to meet its financial obligations due to “substantial cash flow issues.” At the same time, Zanghi couldn’t comment further on that matter until the insolvency process has begun but noted that it will follow insolvency proceeding rules.

For context, ComplianceOne Group sought to become a one-stop shop for operators, providing them with all the compliance tools they need. It sported 22 employees at the start of the year. Many of them, needless to say, are not happy with the development.

Workers Were Unhappy

NEXT.io spoke with former employees who chose to remain anonymous. In the news outlet’s interviews with ex-ComplianceOne workers, it learned that the group’s hurdles had started long ago.

According to the anonymous employees, the group had been under scrutiny in multiple jurisdictions over financial irregularities. Some workers even complained about delayed salary payments on multiple occasions.

To make matters worse, certain workers learned that pension and social security contributions were deducted from their paychecks but not remitted. As a result, the company was even reported to The Pensions Regulator in the UK.

In the meantime, former employees accused Zanghi of not paying salaries and pensions to employees in multiple countries. The businessman was also accused of creating and dissolving entities to avoid legal tax obligations.

Disgruntled employees thus reported Zanghi to a variety of authorities in the UK and the Netherlands.

One employee discussed the matter on LinkedIn, saying that there were people who got hired and worked for three full months without getting paid. The employee said: “New staff get hired whilst others are left with their bills to pay but without salary, urgently looking for new employment to be able to provide for their families.”

However, now that regulators have been involved, the disgruntled employee is optimistic that the number of court cases will “run into double digits.”

CEO Zanghi Addressed the Claims

Zanghi commented on the allegations, telling NEXT.io that the situation is not the result of bad faith or intended avoidance but the consequence of an “ever-worsening financial position.” He noted that his company had sought support from insolvency practitioners in the UK in hopes of allowing ComplianceOne to cover all outstanding liabilities.

Unfortunately, the company’s financial difficulties prevented it from meeting its obligations, meaning that the debts would be included in the insolvency liabilities.

Zanghi also attributed the social security payments to errors in certain jurisdictions.

The CEO promised that the company operated with the “genuine belief” that it would have been able to solve its liabilities through trading and revenue generation.