A 49-year-old Indian-origin former CEO of an Information Technology firm has been charged with fraud in the United States for allegedly falsifying facts that his company supported customer operations in nearly twenty countries, including in India.
Adesh Kumar Tyagi of California is the former CEO, sole director, also the majority shareholder of Systems America subsequently renamed Cloudeeva.
The United States federal regulator Securities & Exchange Commission’s (SEC) complaint, filed in the United States District Court for the Northern District of California on May 31, has declared that Tyagi falsely claimed in press releases he issued between July 2010 & September 2011 that the company had hundreds of customers also supported customer operations in nearly 20 nations.
Systems America told it provided services to Fortune 500 clients also had operations in India as well as the United States.
However, it had only 2 main clients in 2010 and did not support operations in any international countries in 2010 and 2011.
Tyagi also purportedly falsely claimed in a first disclosure he published on behalf of the company in July 2010 that he was not a party to any material litigation.
In yearly reports he published on behalf of Systems America, Tyagi alleged that no officer or director of the company had been named as a defendant in a criminal proceeding when he had been named as a defendant in 2 pending criminal proceedings at the time of each publication.
The complaint also alleged that Tyagi failed to file with the SEC required disclosures of his holdings & transactions in company securities.
The complaint asks permanent injunctions, an injunction prohibiting Tyagi from participating 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, & officer-and-director and penny stock bars.