A 49-year-old Indian-origin previous CEO of an IT firm has been accused of fraud in the US for professedly distorting facts that his organization upheld client operations in almost 20 nations, incorporating into India.
Adesh Kumar Tyagi of California is the previous CEO, sole director, and majority shareholder of Systems America in this manner renamed Cloudeeva.
The US government controller Securities and Exchange Commission’s (SEC) complaint, lodged in the US District Court for the Northern District of California on May 31, has asserted that Tyagi falsely guaranteed in press releases he issued between July 2010 and September 2011 that the organization had many clients and upheld client operations in about 20 nations.
Systems America said it gave administrations to Fortune 500 customers and had operations in India and the US.
Be that as it may, it had just two main customers in 2010 and did not bolster operations in any foreign nations in 2010 and 2011.
Tyagi additionally professedly erroneously asserted in an underlying exposure he distributed in the interest of the organization in July 2010 that he was not a gathering to any material case.
In yearly reports he distributed in the interest of Systems America, Tyagi guaranteed that no officer or director of the organization had been named as a litigant in a criminal continuing, when he had been named as a respondent in two pending criminal procedures at the season of every production.
The dissension likewise claimed that Tyagifailed to file with the SEC required divulgences of his holdings and transactions in company securities.
The complaint looks for changeless directives, an injunction prohibiting Tyagi from taking an interest in transactions of any security of an entity of which he is an officer, director, owner, significant shareholder, or control person, disgorgement of ill-gotten gains plus pre-judgment interest, penalties, and officer-and-director and penny stock bars.