10/02/2014 06:48 EDT | Updated 12/02/2014 05:59 EST

Webtech Wireless CEO departs suddenly, board chairman will fill in as chief exec

VANCOUVER - Webtech Wireless Inc. (TSX:WEW) says Scott Edmonds has resigned as its president and chief executive officer, effective Oct. 1.

His departure follows a previously announced discovery of fraud by a former employee at the telematics company's former U.K. subsidiary.

Webtech didn't announce a reason for Edmonds' departure or mention the fraud investigation in Thursday's announcement.

"On behalf of the board I would like to thank Mr. Edmonds for his service to the company over the past seven and a half years, first as CFO and then CEO," said Andrew Gutman, the board's chairman and now interim chief executive officer.

"Scott has demonstrated exemplary professionalism in dealing with the many and varied challenges that have arisen at the company during this period, and leaves Webtech in a much better financial condition than when he arrived."

Webtech announced on July 31 that it had detected "an instance of fraudulent redirection of funds" by a former U.K. employee — at least $550,000 — over a period from 2010 until the U.K. office closed in 2012.

Edmonds was Webtech's chief financial officer from 2007, when he joined the company, until 2010 when he became its chief executive officer.

In August, when Webtech announced a $1.6-illion net loss for the three months ended June 30, Edmonds said the company was focused on building a "healthy and profitable business."

He said the second-quarter loss included costs associated with a cost-reduction exercise that consolidated technology development in Canada. He also said a reorganization of Webtech's sales group begun earlier this year had been completed.

The Vancouver-based telematics company assists companies with tracking their fleets through telematics.