A former Los Angeles technology executive faces securities fraud charges in connection with a software sale. Prosecutors say that he paid bribes to secure contracts, which produced nearly $100M in commissions.
According to prosecutors, the executive conspired with an Australian banker to inflate the company’s earnings prior to its sale in 2013. The banker rushed $10M in contract sales through the approval process as part of the plan.
The Los Angeles executive created a holding company to retain shares of ServiceMesh. He then gave shares of the company to co-conspirators. The co-conspirators would divest their interests in the holding company prior to signing contracts with ServiceMesh. Once the contract was signed, the co-conspirators would receive new equity in the holding company.
The participants convinced the Australian bank to hire a co-conspirator, who worked for the bank in a supervisory role. The bank supervisor and the bank executive signed off on software contracts that resulted in significant payments to the conspirators.
The conspirators created a second shell company that the IRS initially certified as a non-profit. The non-profit hid proceeds from the software sales. Meanwhile, Australian bank regulators deemed the initial software transactions to be suspicious and arrested the cooperative bank employees. The Internal Revenue Service began to investigate the phony non-profit. During that investigation, the IRS found evidence of fraud in the initial non-profit filing.
As a result, the Los Angeles tech executive faces securities fraud, wire fraud and conspiracy charges. He also faces charges of interstate bribery, filing false tax returns, and obstruction of justice.
Los Angeles securities fraud lawyer
Securities fraud cases are complex, largely because they involve hidden financial transactions. When you face securities fraud charges, hire an experienced securities fraud lawyer like Robert Helfend. Mr. Helfend has more than 30 years of experience in courtroom criminal defense. He takes federal cases in any federal circuit in the United States. He also takes state-level cases in Southern California.
Contact Robert Helfend or call toll-free at (800) 834-6434, (310) 456-3317, (818) 591-2809 or (805) 273-5611 for an immediate consultation on your Los Angeles County securities fraud case.
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