Feeds

Dead FalconStor CEO 'was set to plead guilty'

Huai faced multi-million dollar bribe charges

Build a business case: developing custom apps

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. ®

Boost IT visibility and business value

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?