Telit CEO leaves after links emerge to decades-old fraud

Is CEO Oozi Cats really fugitive Uzi Kats?

The boss of internet of things company Telit has resigned, due to alleged links to a fraud committed in Boston, MA - 25 years ago.

In 1992, a man named ‘Uzi Katz' was indicted by Boston's district courts on counts of wire fraud, and a warrant issued for his arrest. Cats has been known to spell his name in this way, a source told The Telegraph, as it is an alternate spelling of his Hebrew name.

Teli launched an ‘urgent review' into the claim, made by the il Fatto Quotidiano newspaper of Italy, last week, following which CEO Oozi Cats to leave his post. He had originally asked the board for time off while lawyers investigated.

It is not clear whether or not the ‘fugitive defendant' named in the case is Mr Cats. However, Telit appears to believe the allegations, telling investors that its review ‘has found that the evidence shows that an indictment was issued against Oozi Cats in the US and that this fact was knowingly withheld from advisers'. It added, ‘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'.

Telit's shares fell by almost a third when the allegations were first aired, and then fell further to an eventual decline of 54 per cent since the 4^th August. There was a minor six per cent recovery following the news of Mr Cats' departure.

Finance director Yosi Fait will fill Cats' roll in the interim, until a new CEO can be found. Three new independent directors will also be hired ‘as soon as practicable', one of whom will become chairman.