SEC Files Charges Against Quadrant 4 System Corp (QFOR), Nandu Thondavadi and Dhru Desai
The SEC’s complaint alleges that former chief executive officer Nandu Thondavadi and former chief financial officer Dhru Desai stole more than $4 million from Schaumburg, Illinois-based Quadrant 4 System Corp over a nearly five-year period. The SEC press release states that the former executives also are alleged to have caused Quadrant 4 System Corp to understate its liabilities and inflate its revenues and assets, evading scrutiny by lying to the company’s auditors and providing them with forged and doctored documents.
According to the SEC’s complaint, the alleged scheme continued until November 2016, when Thondavadi and Desai were arrested and criminally charged with fraud. Quadrant 4 System Corp announced their resignations in December 2016 and disclosed that the company’s financial reports could no longer be relied upon and required a restatement.
“As alleged in our complaint, Thondavadi and Desai perpetrated a multi-faceted scheme to mislead investors about Quadrant 4 System Corp’s financial condition and secretly enrich themselves,” said David Glockner, Director of the SEC’s Chicago Regional Office.
The SEC’s complaint charges Quadrant 4 System Corp with filing false and misleading quarterly, annual, and other reports, failing to make and keep accurate books and records, and internal accounting control failures. Subject to court approval, and without admitting or denying the allegations, Quadrant 4 System Corp consented to an order to permanently enjoin the company from further antifraud, reporting, books and records, and internal control violations. The court will determine at a later date whether disgorgement or a financial penalty should be imposed against Quadrant 4 System Corp.
Investors in Quadrant 4 System Corp (QFOR) May Recover Investment Losses
If you purchased your Quadrant 4 System Corp investment from a licensed financial advisor, Goodman & Nekvasil, P.A. can help you. Goodman & Nekvasil, P.A., a Clearwater, Florida, law firm with a national practice representing victimized investors, has filed hundreds of cases against brokerage firms selling high-risk or fraudulent investments such as Quadrant 4 System Corp and has recovered more than $180 million dollars on behalf of victimized investors.
All our cases are handled on a purely contingency fee basis by Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA. Kalju Nekvasil, Esq. has practiced in this area of the law for more than 35 years.
There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf. Finally, the filing of such a case should not affect your ownership of your Quadrant 4 System Corp investment.
If you incurred losses on your investment in Quadrant 4 System Corp and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.
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