Washington: A former Indian-origin CEO of a data centre has agreed to pay USD 1.8 million to resolve a case of falsifying certification for the facility under a contract with the US Securities and Exchange Commission (SEC), the Department of Justice said.
Deepak Jain, the former CEO of AiNET Corp, had fraudulently induced the SEC to enter into a contract by falsely certifying that his data centre at Beltsville in Maryland met Tier IV standards, which require 99.995 per cent uptime and advanced resilience features as defined by the Telecommunications Industry Association (TIA).
“Those who do business with the government must do so fairly and honestly,” said Assistant Attorney General Brett A Shumate of the Justice Department’s Civil Division. “We will continue to pursue contractors that knowingly fail to provide required services to federal agencies,” Shumate said in a statement on Monday.
The United States alleged that these certifications were false because UpTime Council was not an operating company and never inspected the AiNET data centre. The SEC required the contractors to deliver the data centre with at least Tier III standards, while AiNET claimed that their facility was a notch higher.
“Protecting taxpayer dollars is an OIG priority,” said SEC Inspector General Kevin Muhlendorf. “The SEC OIG’s dedicated team of...
Deepak Jain had fraudulently induced SEC to enter into contract by falsely certifying that his data centre at Beltsville in Maryland met Tier IV standards. Washington: A former Indian-origin CEO of...