Bosses of tech firm WANdisco are to quit the business after an internal investigation into suspected fraud has found over $115 million in missing bookings.
Mark Hastings, Partner at Quillon Law, commented: “While further details will no doubt be revealed, the $115 million in missing bookings, false purchase orders and misstated revenue bear all the hallmarks of a classic corporate fraud, manipulating WANdisco’s financial position and misleading shareholders and investors.”
“It appears that WANdisco represents yet another example of large-scale fraud in the technology sector. Whilst FRP’s investigation may be at an early stage, it is certain that the consequences for the company are going to be much more extensive than the departure of two executives.”
“Whether this is a simple case of misstated sales figures or a more sophisticated case of fraud is yet to be determined, but as the investigation continues and expands in scope it is entirely possible that we will see more evidence of fraudulent activity uncovered.”
“Due to the scale of the discrepancy between WANdisco’s financial reporting and its true results, it is very likely that we will see litigation arise from these findings. Future legal actions may include claims against the company, its auditors and any individuals found to have been involved in the fraud and there will likely be close scrutiny on profits, secret or otherwise, which may have resulted from the fraudulent bookings and purchase orders”