Feeds

FalconStor settles with feds for $6m

We'll be good boys from now on. Extra good for 18 months

Combat fraud and increase customer satisfaction

FalconStor has settled a two lawsuits regarding alleged improper customer payments by coughing up $5.8 million and signing up to a deferred prosecution agreement.

There were two lawsuits: one from the SEC and the other from the US Attorney's Office for the Eastern District of New York (USAO). Each suit will see falconStor pay out $2.9 million. FalconStor has agreed settlements with both groups of feds. The settlement with the USAO has a deferred prosecution agreement aspect, under which the USAO can prosecute FalconStor within the next 18 months if it doesn't satisfy its [unspecified] obligations. At the end of that period the prosecution threat is lifted.

After the improper payments were discovered, FalconStor CEO, founder and guiding light, ReiJane Huai, was forced out and later died in hospital after apparently shooting himself. It was a tragic end to what had been a major success story.

Current FalconStor CEO Jim McNiel said he was pleased, you betcha, and the company has strengthened its compliance culture. Now, with this thing settled, it can move on to restore profitability. In its last quarter revenues were $19.4 million and there was a loss of $2.4 million. ®

3 Big data security analytics techniques

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
It's GOOD to get RAIN on your upgrade parade: Crucial M550 1TB SSD
Performance tweaks and power savings – what's not to like?
AMD's 'Seattle' 64-bit ARM server chips now sampling, set to launch in late 2014
But they won't appear in SeaMicro Fabric Compute Systems anytime soon
IBM rides nightmarish hardware landscape on OpenPOWER Consortium raft
Google mulls 'third-generation of warehouse-scale computing' on Big Blue's open chips
prev story

Whitepapers

Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
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.