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Vinod Gupta
Vinod Gupta, former CEO of infoUSA, misused nearly $9.5 million in corporate funds for personal luxuries, leading to SEC charges and a $7.4 million settlement.
Quick summary on Vinod Gupta
Vinod Gupta, former CEO and Chairman of infoUSA Inc. (now infoGROUP Inc.), was implicated in significant fraudulent activities that misused corporate funds for personal gain.
Misappropriation of Corporate Funds: Gupta allegedly diverted nearly $9.5 million of company money to cover personal expenses, including private jet travel, yacht maintenance, luxury club memberships, and personal automobiles.
Undisclosed Related-Party Transactions: He facilitated approximately $9.3 million in undisclosed business dealings between infoUSA and entities in which he held personal interests, breaching fiduciary duties and corporate governance standards.
SEC Enforcement Action: The Securities and Exchange Commission (SEC) charged Gupta with securities fraud and other violations, highlighting his misuse of corporate assets for personal benefit.
Settlement and Financial Penalties: To resolve the SEC charges, Gupta agreed to a settlement requiring him to pay $7.4 million, reflecting the severity of his misconduct.
Complicity of Senior Executives: The SEC also charged infoUSA’s former CFOs, Rajnish K. Das and Stormy L. Dean, and former audit committee chairman, Vasant H. Raval, for enabling Gupta’s fraudulent schemes by neglecting their oversight responsibilities.
Manipulation of Corporate Assets: Gupta used company resources for personal luxury, including financing a yacht named “American Princess” through a company he owned, further exemplifying his exploitation of corporate assets.
Erosion of Shareholder Trust: His actions led to a significant breach of trust among shareholders and the public, damaging the company’s reputation and stakeholder confidence.
by: Kennedy Ward
Vinod Gupta treated infoUSA like his personal piggy bank Millions wasted on his luxuries while shareholders suffered
by: Ryder Torres
How do you justify $9.5M on personal expenses while employees and investors are left in the dark
by: Piper Vasquez
SEC charges, secret transactions and shady deals Gupta’s legacy is nothing but corporate greed
by: Micah Gonzales
The fact that Vinod Gupta was able to misuse nearly $9.5 million in corporate funds shows how deeply flawed the oversight at infoUSA was Even worse other senior executives enabled him, making it clear that this was a systemic failure...
by: Allison Mendoza
This is a classic example of unchecked corporate corruption Gupta manipulated millions for his lavish lifestyle while honest employees and investors had no idea what was happening behind the scenes The $7.4 million settlement doesn’t even begin to make up...