Account Executive and Registered Representative Fraud and Mismanagement FINRA Arbitration and Litigation Lawyer, Russell L. Forkey, Esq.
Securities and Exchange Commission v. Rajnish K. Das and Stormy L. Dean, Civ. No. 8:10-CV-00102 (D. Nebraska).
JURY RETURNS VERDICT OF LIABILITY ON ALL CLAIMS AGAINST TWO FORMER CFO’S OF INFOUSA, INC, RAJNISH K. DAS AND STORMY L. DEAN
The U.S. Securities and Exchange Commission recently announced that on March 1, 2012, a jury in Omaha, Nebraska returned a verdict of liability on all claims against former chief financial officers Rajnish K. Das and Stormy L. Dean. Das and Dean were former executives of infoUSA, Inc., a database marketing company headquartered in Omaha, Nebraska. The trial was presided over by U.S. District Judge Laurie Smith Camp. In its complaint, the Commission charged Das and Dean with violations of Sections 10(b), 13(b)(5), and 14(a) of the Securities Exchange Act of 1934; Rules 10b-5, 13a-14, 13b2-1, 13b2-2, 14a-3, and 14a-9 thereunder; and aiding and abetting violations of Exchange Act Sections 13(a) and 13(b)(2), and Rules 12b-20, 13a-1, and 13a-13 thereunder. At the trial, the Commission argued that Das and Dean assisted former chief executive officer Vinod Gupta in looting infoUSA, Inc. by authorizing Gupta’s use of company funds to pay for his lavish lifestyle. The Commission argued that Gupta used company funds to pay for his personal expenses including private jet flights, yacht expenses, private club memberships, credit card expenses, and expenses associated with his homes and cars. The Commission argued that Das and Dean signed and certified Info’s false public filings which underreported Gupta’s executive compensation and related party transactions. After the 10-day trial, the jury deliberated for approximately two hours before rendering its verdict. The Commission expects to file a motion for injunctive and other remedial relief based upon the jury’s verdict.