Telit CEO steps down amid fraud allegations
Telit CEO Oozi Cats has been linked with a fraud indictment in the US in a bizarre case which has seen doubts raised about his identity
The CEO of internet of things firm Telit Communications has stepped down after an internal company investigation revealed he had hidden a previous US indictment against him.
Telit has cut ties with Oozi Cats after it launched an investigation into links between Cats and a US fugitive by the name of Uzi Katz who is accused of fraud.
Cats has led Telit since 2000, but the company claims he had “knowingly withheld” information, which was a “source of considerable anger” within the firm.
In a statement, the company said: "It is a source of considerable anger to the board that the historical indictment against Oozi Cats was never disclosed to them or previous members of the board and that they have only been made aware of its existence through third parties."
US authorities have warrants against Uzi Katz dating back to 1992 which accuse him of setting up a fraudulent property scheme. He was accused alongside wife Ruth V Katz, with the couple reportedly fleeing the US prior to a plea hearing.
Cats agreed to take a leave of absence after what has been described as a “heated” board meeting last week. He has since left the company on a permanent basis, with Telit president and finance director Yosi Fait stepping in as interim CEO.
Telit said it would recruit three new non-executive directors, one of whom would replace the current chairman, Enrico Testa, while Fait will also conduct a review of the company’s activities and cost base.
Telit’s share price dropped 40% last week after initial reports about Cats surfaced, although it has since rebounded by 12% following news of the CEO’s departure.