2 Indian-American executives held for fraud
WASHINGTON: Two Indian American top executives of a software and consulting firm have been arrested in the US for allegedly misrepresenting the company's finances, a media report said on Thursday.
Nandu Thondavadi, CEO of Schaumburg-based Quadrant 4 System, and Dhru Desai, its chief financial officer and chairman, were charged with wire fraud and certifying false financial reports related to two acquisitions and the settlement of a lawsuit against the company in 2013, the Chicago Tribune reported.
Thondavadi faces an additional charge of making false statements to the Securities and Exchange Commission in May during an investigation into the company's financial practices.
Both appeared in Chicago federal court on Wednesday morning to hear the charges, which carry a maximum penalty of 20 years each for wire fraud and certifying false financial reports.
Thondavadi of North Barrington and Desai of Barrington are in federal custody with a bond hearing set for Friday afternoon. Quadrant 4 has offices in seven states and India.