A former QBE US executive faces embezzlement charges after the Federal Bureau of Investigation uncovered what it alleges is a fake invoicing racket.

James Shea, a VP responsible for integrating QBE’s IT systems – is accused of forging the signature of the group’s CFO on contracts authorising payments to businesses controlled by consultant Eugene Fallon.

A QBE North America spokesman told insuranceNEWS.com.au that “we are co-operating fully with law enforcement in this matter”.

More than $US2.6 million ($2.28 million) was paid to the companies over two years, with more than $US1.8 million ($1.58 million) paid back to Mr Shea indirectly, US District Court documents allege. Mr Shea has been released on bail.