Suni Munshani, the former Chief Executive Officer of a Connecticut-based technology company (the “Victim Company”), pled guilty December 9, 2022, in Manhattan federal court in connection with a scheme to defraud the Victim Company of millions of dollars.
Munshani, 61, of Easton, Connecticut, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of five years in prison.
Damian Williams, the United States Attorney for the Southern District of New York, announced that going by his plea agreement with the government, Munshani would pay $10,485,043 in restitution to the Victim Company. District Judge Jed S. Rakoff accepted the defendant’s guilty plea.
U.S. Attorney Damian Williams is quoted saying in the press release that Munshani began betraying his employer and breaking the law within the first year of his employment “stealing millions of dollars to line his pockets.”
According to the allegations in the Superseding Information and other filings and statements made in court:
Between 2011 and 2019, Munshani was the CEO of the Victim Company, which provided data security services to its clients. Within six months of his appointment as CEO, Munshani and others began an approximately nine-year scheme to defraud the Victim Company. During the scheme, Munshani created an email account associated with a purported third-party contractor controlled by him and used that email account to correspond with the Victim Company and to obtain payments from the Victim Company totaling at least approximately $3 million dollars for services that were never provided to the Victim Company.
Munshani also caused the Victim Company to issue a $3.5 million check for a purported tax liability, which check he then deposited into an unauthorized bank account created by him in the name of the Victim Company.
In addition, Munshani defrauded the Victim Company through fraudulent licensing and reseller agreements between the Victim Company and two other companies.