Feds Charge Encryption Co. Execs With $50M Investor Fraud

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By Dean Seal (October 20, 2021, 7:17 PM EDT) — Federal authorities claim three former executives of a bankrupt encryption software company fraudulently raised millions of dollars with fake bank statements, phony financial reports and, at one point, by impersonating a customer on an investor call.

Prosecutors unsealed an indictment in New York federal court Wednesday accusing GigaMedia Access Corp. founder Robert Bernardi, former Giga chief financial officer Nihat Cardak and Sunil Chandra, who previously worked in business development at Giga, of a wide-ranging scheme to raise more than $50 million in debt and equity by lying about the company’s success.

The three men were arrested on Wednesday morning and face…

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