Oh no, you're thinking, yet another cookie pop-up. Well, sorry, it's the law. We measure how many people read us, and ensure you see relevant ads, by storing cookies on your device. If you're cool with that, hit “Accept all Cookies”. For more info and to customize your settings, hit “Customize Settings”.

Review and manage your consent

Here's an overview of our use of cookies, similar technologies and how to manage them. You can also change your choices at any time, by hitting the “Your Consent Options” link on the site's footer.

Manage Cookie Preferences
  • These cookies are strictly necessary so that you can navigate the site as normal and use all features. Without these cookies we cannot provide you with the service that you expect.

  • These cookies are used to make advertising messages more relevant to you. They perform functions like preventing the same ad from continuously reappearing, ensuring that ads are properly displayed for advertisers, and in some cases selecting advertisements that are based on your interests.

  • These cookies collect information in aggregate form to help us understand how our websites are being used. They allow us to count visits and traffic sources so that we can measure and improve the performance of our sites. If people say no to these cookies, we do not know how many people have visited and we cannot monitor performance.

See also our Cookie policy and Privacy policy.

This article is more than 1 year old

IT biz embezzlement brouhaha leaves bloke with $456k migraine

Backer charged in connection with alleged $4.1m corporate fraud scandal

An investor in an IT biz has coughed up $456,000 after America's financial watchdog accused him of looking the other way while executives at the consultancy he backed allegedly embezzled millions of dollars.

Late last week, Bhusan Dandawate was charged [PDF] by the SEC with allegedly aiding and abetting fraud – after he was said to have let Quadrant 4 CEO Nandu Thondavadi and CFO Dhru Desai cook the company's books to steal more than $4.1m between 2015 and 2016.

Based out of Shaumberg, Illinois, in the US, Quadrant 4 offered consulting and software development support for retail, financial, and medical companies. The firm is still operating, and has been under new management since the November 2016 arrests of Thondavadi and Desai.

Dandawate was accused of helping the two embezzle money from the business by falsely claiming to own ten shell companies that Thondavadi and Desai were using to shift money out of the company. Additionally, the SEC alleged that Dandawate helped the duo set up false payments and produce phony audit confirmation letters to help cover up the fraud.

In exchange for this, it is said Dandawate received $122,000 in cash, benefited from Quadrant 4's stock price rising thanks to the fraudulent reports, and had debt liability he jointly held with Thondavadi and Desai paid off.

Last month, Quadrant 4 reached a deal [PDF] with the SEC to settle its part in the case and enter Chapter 11 bankruptcy protection. The watchdog's case against Thondavadi is ongoing. Also last month, Desai agreed to settle his part in the SEC lawsuit by forking out roughly $1.6m.

To end his involvement in this matter, Dandawate will pay the SEC $131,466 and a civil penalty of $325,000. He will also agree to a permanent bar on serving as an officer or director of a publicly traded company, and will agree to an order forbidding him from future violations of US securities law. ®

Similar topics

TIP US OFF

Send us news


Other stories you might like