Ex-infoUSA execs found liable in looting case

NEW YORK (Reuters) - Two former infoUSA Inc executives have been found liable for their role in a scheme to loot corporate funds to provide perks to the company’s ex-chief executive, the U.S. Securities and Exchange Commission said on Friday.

The defendants, Rajnish Das and Stormy Dean, who served as chief financial officers at the database marketing company, had been accused of facilitating payments to former infoUSA CEO Vinod Gupta and certifying annual reports and proxy statements that underreported Gupta’s compensation.

A federal jury in Omaha, Nebraska returned the verdict late Thursday night following a 10-day trial, the SEC said. The SEC said that the jury found against Das and Dean on seven claims, including fraud, false proxy statements, and false certifications.

Calls to lawyers for Das and Dean were not immediately returned.

In 2010, the SEC reached a settlement with Gupta, who agreed to pay roughly $7.43 million to settle charges that he extracted millions of dollars from the company to fund a lavish lifestyle, including the payment of extravagant travel, club memberships, several homes, and a yacht.

The case is SEC v. Das, U.S. District Court of Nebraska, 10-00102.

Reporting by Andrew Longstreth; Editing by Bernard Orr