Telit Communications shares drop again as CEO takes leave of absence over fraud charge

 
Alys Key
Follow Alys
A man walks through the London Stock Exc
The London-listed company's shares have plummeted in the last few days (Source: Getty)

The chief executive of tech firm Telit has taken a leave of absence following speculation he is a fugitive from an historical fraud charge.

Just two days after shares in the 'internet of things' enabler took a pummeling as it swung to a loss, the company has announced that its chief executive has asked to take a break from the company following speculation that he evaded a US fraud charge prior to Telit's formation.

The announcement sent shares in the Aim-listed firm down 30 per cent to 127.5p.

CEO Oozi Cats will step away from the company following a report in Italy's il Fatto Quotidiano which dredged up historical indictments in the US against him. The fraud charge dates back to 1992, and are not related to Telit.

Following the speculation that Cats is a fugitive from the charge, he has requested a leave of absence.

Read more: Google's the latest tech giant to find itself in a diversity storm

Finance director Yosi Fait has stepped in as interim CEO while the board appoints solicitors to look into the matter.

In the first half of this year the company made a loss before tax of $6.7m (£5.1m), down from a profit in the same period last year of $4.7m. Shares fell 40 per cent on Monday following the news.

Read more: What is the Internet of Things?

Related articles