Former Digi CFO Charged with Securities Fraud (StarTribune)

SEC says Krishnan approved falsified T&E reports.

The Securities and Exchange Commission charged Subramanian Krishnan, the former CFO of Minneapolis-based Digi International, with securities fraud, according to the StarTribune. The SEC says Krishnan avoided Digi’s internal controls to approve employees’ travel and entertainment expenses that lacked business purposes, and also diverted company funds to pay for his own personal expenses.

Digi policy required that the CEO sign off on the CFO’s expenses. Krishnan avoided that requirement by having the Hong Kong office submit his expenses under another employee’s name.

Krishnan left Digi, a manufacturer of computer networking devices with $204 million in revenue, in 2010, after an internal investigation into expense reimbursements. He is now CFO of the National Marrow Donor Program.

 

See the full story here and the SEC’s press release here.

 

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