ly $6 million of his fortune to the race as he looks to make up ground on early Democratic front-runner Gretchen Whitmer of East Lansing and other declared candidates.
The 62-year-old Indian-born American has touted his business acumen and success at Avomeen, which he helped found after returning to Ann Arbor from Missouri in 2010.
Thanedar was named 2016 Entrepreneur of the Year by multinational finance giant Ernst and Young and made local headlines late last year after giving his employees a collective $1.5 million in holiday bonuses.
But the lawsuit alleges Thanedar instructed employees to adjust and relax the company’s approach to recognizing revenue. He specifically told employees that the sale — and their corresponding transaction bonuses — would be jeopardized if the company did not meet monthly revenue targets, according to the complaint.
The entrepreneur also is accused of instructing bookkeeping staff to back date invoices so revenue could be recognized in prior months to suggest a more stable income stream.
The lawsuit alleges Thanedar violated the federal Securities Exchange Act of 1934, the Michigan Uniform Securities Act, the Delaware Securities Act, common law fraud and breach of contract.
Avomeen Holdings, whose majority owner is High Street Capital, attempted to rescind the purchase agreement and all related transactions in April, according to the suit. Thanedar and the Chemreal LLC company he created during the sale “refused that demand,” attorneys said.
Purchasers are seeking a jury trial and an unknown financial award in the case, requesting compensatory and punitive financial damages, attorney fees and any other relief the court deems proper.
It’s not the first legal dispute for Thanedar, who made and lost a fortune in Missouri after coming to the University of Michigan as a post-doctorate scholar in 1982.
The St. Louis Post-Dispatch reported he bought and built up a chemical analysis firm there, eventually purchasing a Ferrari and constructing a 13,000square-foot mansion.
But the Great Recession and financial industry crash hit his company and acquisitions hard, reportedly prompting a lender to take him to court, where a bankruptcy judge appointed a receiver to sell the business.
MI Legalize leader Jeff Hank said the fact the forum drew five gubernatorial candidates is evidence of “a cultural change we’re undergoing here,” and told activists the event made him emotional.