The chairman of Telit Communications, Mr Oozi Cats, has stepped down following an internal investigation that showed that he covered up a US indictment filed against him.
Telit opened an investigation when the company suspected that Mr Oozi Cats is the same person as Uzi Katz, who has been declared wanted for fraudulent activity in the United States.
The internet firm, which is listed on London’s Aim market, disclosed that Mr Cats had “intentionally concealed” records.
It said his action to withhold information was a “source of great anger”.
Mr Cats is a co-founder of the company and has been the CEO since 2000. The company Telit is a supplier to Tesla, an electric automobile manufacturer.
He took some time off from an operation last Tuesday after a meeting with the board, and Telit has now come out to say he has resigned from the firm.
Fraud Allegation Dates Back To 1992
The US government have a pending warrant against Uzi Katz, which dates back to 1992, for supposedly creating a false property program.
“This issue has been quickly solved by the board and we are now moving the firm to a greater height.” A spokesperson for Telit said.
Telit in a statement disclosed that it would bring in three new “non-executive directors”, one of which will step in as a replacement for the current chairman, Enrico Testa.
The stakes in Telit nearly climbed to 15% to 142p early hours on Monday, however it remained lower than the 182p level of the stakes even before the accusation against Mr Cats surfaced.
Till date, Mr Cats has not come out to say anything concerning his departure.
A spokesperson for London Stock Exchange Group disclosed that it wasn’t able to discuss on individual Aim-listed firms.
Just two years ago five Chinese firms had their stakes frozen in a speedy circle in a series of corporate authority wrongdoing; one, in particular, is the notable breakdown when the London board had to admit it couldn’t reach out to the management in China.