Reijane Huai, the former chief executive of cloud backup solutions provider FalconStor, died the day before he was reportedly about to plead guilty to charges of bribery given to a FalconStor customer. Authorities believed Huai has committed suicide. That particular customer has not been revealed yet, though there are additional details about the circumstances of the alleged improper payments.
“Investigations were started by New York’s County Distract Attorney (now ceased), the US Attorney’s Office for the Eastern District of New York, and the US SEC, which was weighing up insider trading allegations,” writes the Register.
News broke of the impending investigation in the same timeframe Huai, who served as president and chairman of FalconStor in addition to being its CEO, resigned from his job. The improper payments concerned the said customer’s software licensing agreements, though that’s all the information that has been made available outside the court.
FalconStor and its stock took a hit, but today James McNiel is leading the company towards growth. However, while the bribery case has been canceled there are still two more class action lawsuits against the backup vendor.
