Tomasetta Indicted Part II

Here’s the SEC’s complaint. The backdating charge is pretty minor. The SEC desperately wants individuals to be tried and convicted for backdating.

I will say that Dr. Tomasetta approved my hiring at Vitesse and I am grateful. The engineers I worked with in Austin and Camarillo were some of the best I have ever worked with. I think Tomasetta should take credit for making the company engineer friendly. However, the company was also the most political and disfunctional entity I have ever worked for. I believe, if the charges alleged are true, that Tomasetta was distracted by all the activities from running the company.

Item #8 is funny, “During an interview of Tomasetta by Vitesse’s attorneys, who had begun an internal investigation; Tomasetta admitted to these lawyers that he had told Hovanec and Mody that this conduct ‘is the Martha Stewart thing, this is dumb, we need to stop -we’re going to go to jail.’. Remember:


Company attorneys represent the company, not you. Be very careful what you say to them. Even better, don’t say anything, and don’t say anything to federal investigators, either, even if you hadn’t “inserted these fabricated minutes into the stock option administrator’s computer and turned back the clock on the computer thereby creating the false appearance that the minutes had been written at the same time as when the purported meetings occurred.”

now for the juicy stuff

It is obvious that the reason they went bananas on the backdating coverup was because they didn’t want close scrutiny of the books. When I was interviewing, trying to find a job after the shenanigans came out, and people asked me, “what the hell was going on over there?” I told them “Uncle Lou” ran the publicly traded company like an Italian grocery store. I thought, from family experience with Italians running food businesses, that he was keeping two books. Italian food business always have two polices:

1) CASH ONLY, receipt only on request
2) Family members, and only family members, operate the cash register

Turns out the SEC says that I was right.


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