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Telit Communications CEO resigns following emergence of fraud allegations

Shares in AIM-listed firm Telit Communications jumped on Monday after it was announced its CEO had stepped down following allegations of wire fraud.

An internal investigation prompted the UK-headquartered tech firm’s chief executive Oozi Cats to resign with immediate effect.

The company said in a statement: “The independent 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.”

Headquartered in London since 1986, Telit creates technology for Internet of Things devices. Back in May it raised £39m to make complementary IoT acquisitions.

The company’s stock went up more than 8% on Monday morning following news of Cats’ departure.

The Telit founder was allegedly indicted under the name Uzi Katz in Boston in 1992 after he and his wife were accused of “flipping” properties to take out mortgages with inflated values.

Telit’s statement said: “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 and that they have only been made aware of its existence through third parties.”

The company said it is now determined to “move on from this difficult situation”, with the CEO role being filled temporarily by Yosi Fait, former president/finance director at Telit.