back to article IT biz embezzlement brouhaha leaves bloke with $456k migraine

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 …

  1. Doctor Syntax Silver badge

    "an order enjoining him from future violations of US securities law. "

    This is an odd penalty. It implies that normally it's OK ton violate US securities law.

    1. a_yank_lurker

      @Doctor Syntax, Actually this is a form of probation. If he violates these terms he gets nailed for again and the second time they will not so nice. As this is a binding agreement between him and the ferals with some real teeth on the feral side. The teeth kick in if he is charged not when he is convicted; in some ways he loses the benefit of doubt as a known violator.

    2. diodesign (Written by Reg staff) Silver badge

      Re: Doctor Syntax

      A_yank_lurker is right – if you enjoin someone from, you prohibit them from doing something. In this case, forbidding them from breaking the law.


  2. MAH

    so let the 2 guys each steal 2 million dollars from the company and all he got was a measly $122k...seriously...if you are going to do something stupid, at least make the risk worth the reward to some degree....

    1. david 12 Silver badge

      It's not clear how much money was actually availble -- perhaps the 122K was all of it.

      Management was inflating their turnover, and hence their stock prices, by stealing money from the company, then using it to pay the company for false services, then stealing the money not actually spent on mythical product and services, then paying it in again...

      I'd have to read more to find out if the 4M was actual money, or just the same money over and over again.

  3. Mark 85

    Jail Time for all involved?

    Of course the SEC can't but what about other agencies? About time these guys saw gray walls and iron bars. Signing an "agreement" does nothing when there's greed and big money involved.

    1. a_yank_lurker

      Re: Jail Time for all involved?

      SEC levies fines but the DOJ charge him and if convicted put him away for a spell in Club Fed. Because he is a secondary figure the DOJ may not go after him for an all expense paid vacation.

      Also, note the SEC has barred him from taking certain very high paying positions in any publicly traded company in the US for life. While that may not seem severe, it really crimps his style as he will have a hard time getting a job that pays anything near what these positions will pay.

  4. Anonymous Coward
    Anonymous Coward

    Steal £10 from an old lady, go to jail

    Steal millions from a business, go to the naughty step

    Steal billions from the public, get promoted for creative accounting.

    Laws are for poor people, not big companies.

    1. RedCardinal

      Re: Steal £10 from an old lady, go to jail

      If you steal millions, you're hardly poor :)

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