Reebok India alleged a Rs. 870 crore fraud by its former Managing Director and Chief Operating Officer in 2012. A forensic audit revealed they had over-invoiced sales, maintained secret warehouses, and siphoned goods to ghost companies. An FIR was filed against the two former executives and 11 others for fraudulently raising fake invoices and receipts totaling over Rs. 350 crores. The fraud led to a 26% decline in Reebok sales in India. Parent company Adidas wrote off 200-million Euros and closed one-third of Reebok's warehouses in response to the scam.