PE-Backed Mobileum's Execs Charged With Securities Fraud
The U.S. Attorney for the Southern District of New York has unsealed an indictment charging several executives of the private‐equity‐backed telecom firm Mobileum Inc. with conspiring to commit securities and wire fraud.The charges stem from an alleged scheme conducted by former Mobileum Chief Financial Officer Andrew Warner and Kishore Vangipuram, the former chief of delivery (CDO), a press release from the Southern District of New York stated.In 2021, Warner and Vangipuram inflated the value of the company to "convey robust growth and operational efficiency" in order to allegedly deceive an investment firm into overpaying for the business in a private equity transaction. The two executives falsified Mobileum’s financial metrics and when the sale from Audax Group to H.I.G. Capital took place, the firm was valued at $915 million, Bloomberg reported.Warner received approximately $5.2 million and Vangipuram received approximately $5.5 million in stock, cash and other proceeds from Mobileum's sale, the press release stated.‘Doctored ...Full story available on Benzinga.com
