The head of storage vendor FalconStor Software has stepped down after admitting that improper payments were allegedly made in connection with the contract of one of its customers.
ReiJane Huai, who founded the company a decade ago, resigned from his positions as chairman of the board, president and chief executive of FalconStor yesterday.
All three positions have now been filled internally, with the firm’s chief strategy office James McNiel taking on the role of interim chief executive and president.
A press statement on FalconStor’s website confirms Huai’s misdemeanour is under investigation by the police. It also states that an internal inquiry into the matter will be launched by the vendor shortly.
"The company has fully co-operated with law enforcement authorities with respect to the ongoing investigation, and it will continue to do so," it stated. "In addition, a special committee of the board has been formed to conduct a full internal investigation of these matters and the special committee has retained counsel to assist it in its investigation."
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