Pair forfeit Telefunken stock amid accusations
06/13/2012 12:00 AM
06/13/2012 9:10 AM
Two former executives accused of defrauding the owner of a Roseville computer-chip plant have surrendered their shares in the company.
Former chief executive Subbarao Pinamaneni and Raj Johal, former president, gave up their stakes in Telefunken Semiconductors International, company attorney V. David Rivkin said Tuesday.
The men "essentially forfeited their combined 40 percent interest," Rivkin said.
Telefunken settled a pair of lawsuits accusing the pair of crippling the company by siphoning off $23 million. Their acts forced the company to trim staff at the 600-employee plant and put off a major expansion, Telefunken said.
The two used the money to support a semiconductor company they control in Germany, according to Telefunken.
Pinamaneni owned 30 percent of Telefunken and Johal owned 10 percent, according to court papers. They left the company earlier this year.
With them out of the picture, Telefunken is owned by a New York firm, Semiconductor Ventures LLC, and Siu Man "Johnny" Ng.
Rivkin declined to comment further, saying that the settlements are confidential.
Pinamaneni has denied any wrongdoing, while Johal has been unavailable for comment.
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