Tech company CEO sentenced to 42 months for fraud 

Stock photo: Dreamstime

Suni Munshani, 61, the former Chief Executive Officer of a Connecticut-based technology company was sentenced to 42 months in prison for his participation in a scheme to defraud his former employer (Victim Company) of millions of dollars.  The sentence was imposed by U.S. District Judge Jed S. Rakoff.

In addition to his prison term, Munshani, of Easton, Connecticut, was sentenced to three years of supervised release.  The Court reserved decision on the amount of restitution.

An April 10, 2023 press release from the U.S. Attorney for the Southern District of New York, the public court filings and statements made in court showed:

Between 2011 and 2019, Munshani was the CEO of the Victim Company, which provided data security services to its clients.  Within six months of his appointment as CEO, Munshani and others began an approximately eight-year scheme to defraud the Victim Company.

During the scheme, Munshani, among other things, created an email account in the name of his deceased uncle but controlled by himself.

Posing as the uncle, Munshani used that email account to correspond with the Victim Company and to obtain payments from the Victim Company totaling at least approximately $3 million dollars for services that were never provided.

These purported services were falsely represented to have been rendered by the uncle as well as others, including a marketing executive who had met Munshani in social settings but had never worked for him or the Victim Company and had no idea his identity was being used by Munshani.

Munshani also caused the Victim Company to issue a $3.5 million check for a purported tax liability, a check that Munshani then deposited into an unauthorized bank account created by him in the name of the Victim Company.

Munshanni also defrauded the Victim Company through fraudulent licensing and reseller agreements between the Victim Company and two other companies.



Please enter your comment!
Please enter your name here