Former EDS Employee Sentenced To Prison In Fraud Scheme - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Software // Enterprise Applications
News
11/22/2006
12:44 PM
50%
50%

Former EDS Employee Sentenced To Prison In Fraud Scheme

A federal jury found two men guility of helping to steal hundreds of thousands of dollars from EDS by stealing checks sent to the company and laundering the funds.

A former Electronic Data Systems employee and a co-conspirator were sentenced to prison Tuesday after a jury found them guilty of defrauding the outsourcing company through a sophisticated money laundering scheme.

Joseph Amato, 65, of Wyckoff, N.J., was sentenced to one year plus one day in prison. He is the former finance leader of EDS's Global Securities Industry Group. John Fasciana, 61, of Bedford Hills, N.Y., received a sentence of 48 months. Fasciana is an attorney and Certified Public Accountant. Also charged in the scheme was Michael T. Reddy, of Saddle Brook, N.J. Reddy, the former CEO of the GSI Group, died prior to trial.

A federal jury found that Amato and Fasciana helped Reddy steal hundreds of thousands of dollars from EDS by stealing checks sent to the company and laundering the funds through Fasciana's attorney trust account. Jurors also found that the trio conspired to falsify EDS's accounts to make it appear as though Reddy's group met various sales and profit targets, resulting in millions of dollars in illicit bonuses for Reddy.

Prior to the case, Reddy -- who died in February of 2005 -- appeared to be a pillar of the Wall Street technology community. He was a graduate of Harvard Business School's Advanced Management program and appeared on Irish America magazine's list of top 100 Irish-American businessmen. He also authored a widely quoted book on securities IT operations.

EDS officials said the company was pleased with the verdicts. "Justice has been done," said a company spokesman.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

News
How SolarWinds Changed Cybersecurity Leadership's Priorities
Jessica Davis, Senior Editor, Enterprise Apps,  5/26/2021
Commentary
How CIOs Can Advance Company Sustainability Goals
Lisa Morgan, Freelance Writer,  5/26/2021
Slideshows
IT Skills: Top 10 Programming Languages for 2021
Cynthia Harvey, Freelance Journalist, InformationWeek,  5/21/2021
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
Planning Your Digital Transformation Roadmap
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
Slideshows
Flash Poll