According to the SEC’s complaint, Dandawate aided and abetted a fraud perpetrated by Quadrant 4 System Corp. (“QFOR”), Nandu Thondavadi, and Dhru Desai by falsely claiming in bank documents that he controlled ten entities that were, in reality, controlled by QFOR, Thondavadi, and Desai, and by allowing QFOR to use those bank accounts for various fraudulent purposes. The complaint also alleges that Dandawate participated in the falsification of QFOR’s revenue by helping to arrange numerous round trip transactions and by knowingly signing and sending two false audit confirmation letters to QFOR’s auditors. The complaint further alleges that the fraudulent scheme resulted in the material falsification of QFOR’s financial condition as reported in QFOR’s public filings in 2015 and 2016.
via Bhushan Dandawate (Release No. LR-24210; Jul. 19, 2018).
