Feeds

Dead FalconStor CEO 'was set to plead guilty'

Huai faced multi-million dollar bribe charges

High performance access to file storage

Newsday is alleging that FalconStor CEO Reijane Huai was going to plead guilty to a multi-million dollar bribery scheme.

Reijane Huai died on Monday in an apparent suicide – the day before he was due to face charges in a US District Court on 27 September at 11.30am. Newsday claims records show he was intending to plead guilty.

A FalconStor statement in September last year said: "Mr Huai tendered his resignation following his disclosure that certain improper payments were allegedly made in connection with the company's contract with one customer." These payments concerned the customer's licensing of software.

Investigations were started by New York's County Distract Attorney (now ceased), the US Attorney's Office for the Eastern District of New York, and the US SEC, which was weighing up insider trading allegations. Both the SEC and the US DA's office issued subpoenas seeking documents referring to the customer, whose identity has not been revealed. The US DA's subpoena followed a grand jury session, and was seeking information about FalconStor employees.

There are two class action lawsuits against FalconStor for violations of Federal Securities Laws. These are separate from the bribery investigations by the US DA's Office and the SEC. ®

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.