The Securities and Exchange Commission today charged Daniel Moser, the former controller of FTE Networks, Inc., a network infrastructure company formerly based in Naples, Florida, for his role in a multi-year accounting fraud. This alleged scheme conducted by Moser, along with three senior executives previously charged by the Commission in July 2021 and June 2022, inflated the company’s revenues for certain periods by as much as 108 percent.
According to the SEC’s complaint, Moser helped FTE’s former CEO, Michael Palleschi, CFO, David Lethem, and Chief Administrative Officer and President, Anthony Sirotka, inflate FTE’s revenue by directing FTE to improperly recognize revenue and related accounts receivable for nonexistent construction projects. The complaint also alleges that Moser, together with Palleschi, Lethem, and Sirotka, misled FTE’s auditor about approximately $12.5 million in fictitious revenue and related accounts receivable, by, among other things, providing false and misleading materials to the auditor.
‘Enforcement 40’ for 2020
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