Kit Digital Inc.s former Chairman and CEO and its former CFO were arrested and charged with accounting fraud at the software company. Both are being held, pending extradition to the US and face up to 20 years in jail if convicted on the most serious charge. Prosecutors in New York claim the ex-Chairman and CEO, […]
Kit Digital Inc.s former Chairman and CEO and its former CFO were arrested and charged with accounting fraud at the software company. Both are being held, pending extradition to the US and face up to 20 years in jail if convicted on the most serious charge.
Prosecutors in New York claim the ex-Chairman and CEO, Kaleil Isaza Tuzman, 43, and the former CFO, Robin Smyth, 61, conspired to mislead investors and regulators about the companys financial health. Kit Digital filed for bankruptcy in 2013 and is now known as Piksel Inc.
From 2010 to 2012, Tuzman and Smyth recognised $6 million in improper revenue, overstated company assets by $7.9 million and understated $4.4 million in losses, prosecutors said in an indictment unsealed Tuesday in Manhattan federal court.
Tuzman is also charged with conspiring with an unnamed hedge fund operator from December 2008 to September 2011 to inflate Kits trading volume and share price by so-called match trades that allowed Kit to conceal purchases of its own stock.
