A London-listed technology company has recently been censured by the Stock Exchange for failing to disclose the fact that its founder and former Chief Executive Oozi Cats was wanted for wire fraud in the US in the early 1990s.

An investigation by the company’s legal advisors linked him to a person going by the name of Uzi Katz. The company said that “evidence shows that an indictment was issued against Oozi Cats in the US and that this fact was knowingly withheld from advisers”. The company subsequently issued profit warnings and sold its automotive technology division. The London Stock Exchange fined the company and issued public censure over a breach of rules when it was listed on the Aim market. The rules stipulated that a director’s full name and any previous names must be disclosed.

In this article, Andrew Durant shares his views on combatting corporate fraud and undertaking proper due diligence.

The views expressed in this article are those of the author(s) and not necessarily the views of FTI Consulting, its management, its subsidiaries, its affiliates, or its other professionals.

For further information please contact Linda Bertolissio or Riina Rintanen.