A former Indian-origin CEO of a stock company has been found guilty in involving in manipulative trading and making false claims in the press releases. He has also been forced to pay $294,000 as a fine.
The former CEO, Adarsh Kumar Tyagi, who was the director along with the major shareholder in the company System America, which then renamed as Cloudeeva, has been found guilty and now has to be a whooping fine.
The final judgement in the case has been obtained by the Securities and Exchange Commission. It has also enforced a conduct-based injunction on Tyagi along with finding him guilty in violating federal securities regulation.
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Tyagi will now have to pay a hefty finer of $294,000 as disgorgement and interest.
The plea against Tyagi stated that he falsely claimed in various press releases, which was issued between July, 2010 to September, 2011 of supporting operation in 20 overseas countries, which in fact had only 2 clients and no support in the foreign countries.
Tyagi, in last September, had pleaded guilty for the misconduct as claimed in the complaint filed by SEC.
By Prajakt K.
