Ac­cused

The Detroit News - - Front Page - Joost­ing@de­troit­news.com

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.

Robin Buck­son / The Detroit News

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.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.