Former Frost & Sullivan Executives Allege Company Fraudulently Obtained PPP2 Loan
Frost & Sullivan is best known for its awards program, with recipients including well-known companies like Motorola and Amazon Web Services.
We have criticized the ethics of those awards, pointing out that they are effectively paid for and illegitimate. See: Motorola Illegitimate Body Cam Award From Frost & Sullivan; Do Not Trust Frost & Sullivan Awards; CEO Refuses To Pay For Frost & Sullivan Award.
Two former Frost executives are now accusing the company of further unethical conduct - conduct that isn't just unethical but also, if true, likely illegal. They allege that Frost falsified business records to fraudulently obtain a PPP2 loan.
In this report, we analyze the former executives's claims and lay out why, if true, they could lead to criminal indictments.
Executive *******
****** ***** *** ***** **** *** former *** ******* ******** **** ******* in ***** ******* **** ***** & Sullivan ********* ********* *********** ** ***** for * **** ****, ***** * private *** **** ******* ** ***********, and ************ *****'* ***** ** ****** dissenters. **. **** *** ******* *** case **** *****, *** **. ********'* - ** ***** ***** *** ******* Mr. ******** ** ********** ***** - is *******.
** *** *********** *** ****, ***** and *** **-********, ***** ******* *** David ********, ***** **** ******** ********** for ***** *** **********. **. ******** may **** ** ********* ** ******* (making *********** ******* ***** ***** **** the ******* **** * ********* ********** in ***** ************ **** ******* ***), but ** ** ********** **** *** former ****** ********** **** ************* **** such ******* ***********.
***** & ******** *** *** ******* to ******** ******** *** *******.
PPP2 **********
*** ******** ********** ******* ****** **** (PPP2) ***** **** * **** ** the ** **********'* ******* ** ******* economic ****** ** ********** ********* ******** by *** *****-** ********. ********** ***** the ******* ***** ** *** *****, PPP2 *** ************ ******** *** ******* and ******-*** **********, ******** * ****** loan **** *** **** ******* **** terms ** *** ***** *****.
** ******* *** * **** ****, businesses *** ** **** ******* ********, including ************* ** ***** * **% reduction ** ***** ******** ******* ********** quarters ** **** *** ****. ************* ** *** ******** ******* "***** receipts"** "*** ******* ** ******** **** received ** *******."
***** & ******** ******** * $* million**** **** ** ***** ****. *** ******* ********** ******** *$*+ ******* *****-***** *** **** ** April ****.
Former ********** *** ***** ********* *******, **** ********** ***********
*** ***** ***** *********** ** ***** came ****. ****'* **** ******* ******* ***** & ********, **. *******, *** **. Frigstad. ********* ** *** ****, **. Gens ******** **. ******* *** *****'* board ** ********* ** ******* **** that ***** *** *** ******* *** a **** **** ******* *** ******* had *** ******** * ********** ********* in ***** ******** ******* **** *** 2020. ** ********, **. **** **** that **. ******* *** **. ******** "nevertheless ****** ***** **** *** **** loan ***********" *** "******* [**. ****] from *** *********** *******," ********* *** with ***** ********* ******* **********. ********* to **. ****, **. ********** **** fraudulently:
********* ** ******* *** **** **** application ***** "********," ******* ** ******* which **** ******** ******* **** ******* the ***, *** **** * ****** [Frost & ********] *** ***** **** as * ******* ******* **** ****** its *** *******.
**. **** **** **** **. ******* proceeded ** **** *** *********** **** Mr. ****'* ********* **********. ***** ******** a$* ******* **** **** ** ***** 2021. ********* ** **. ****, ***** later ********** ******* *** ** "*******[***] him **** ********* *** **** ** CFO," "********[***] **** *** ********** ** the *******, **, *** ** *****," and "********[***] *** *****[***] [***] *********."
**. ********, *****'* ****** ***, *** made ******* *********** ** ******** ***** filings.***** ** ***** **. *********** ********* ********** $* ******* **** the ******* ** ******** * *********, no-bid ******** ** * ******** ******.
****. ********'* ****** ** ******* *****'* lawsuit, ** ****** ** ******* ** the ******* **** ****** ** ***** 2021. ********* ** **. ********, ** took ******** ***** *** **** ** Frost's ***** *** ******** **** ** "his ********** **** ******* *** ********** were ********** ** ****** *** ***** into ***** ******** ********." **. ******** says ** ************ ***** * ******* law ****, ***************, ** *********** *** Company’s ********* ********** *** ********** ** relation ** *** **** ****. ** response, **. ******** ****** **** **. Frigstad *** **. ******* ************ *** board ** ****** **. ********, *** then ********** ***************'* *************.
**. ******** ****** ******** ******* ******* ***** & Sullivan ** ******** ****, *** ***** **** ** *** same *********** *****.
**. **** ******* *** **** **** Frost ** ****. **** ***** ********* Mr. ******** ****** ******.
***** *** ***** **** **. ******** and **. **** *** ** ********* to **** ***** *********** ** *** to **** ***** **** ********* ***********. While **** ********** ****** *****, ****** false *********** ** ***** ******* *********** perjury *** *** ***** ******** *********. It ***** ** * ****** ***** move.
Criminal ************
*** *********** ******* ***** & ********, Mr. *******, *** **. ***** ***** lead ** ******** ***********.
********** ********* *********** ** ****** * loan *** **** ** ******* ** bank *****. **** ***** ****** **** individuals ** ******** *** ********** ***** to ****** ***** ** ****** **** a **** ** ***** ********* ***********. If ***** & ******** ************* ************** financial **** ** ****** * **** loan, ** ***** ********** **** *****.
***** & ********, **. *******, *** Mr. ***** ***** **** **** ******* of **** ***** ** **** ***** if **** **** ********** ************** ** physical **** ** ******** ********** ***********.
*********** ***** **** ******** ******** ** indictment *** ********** ** ****** *****, which ****** **** *** ** **** parties *********** ** ***** *** ********** activities. *** *********** ** ******** ********** (Mr. ******* *** **. **********) ** the *********** *** ********** ** *** allegedly ********** *********** ***** ******* * conspiracy.
*** *** ***** *************** **** *** US ***** ******** ************** (***)** "*******, ******, *** *******" ** fraudulent *** ************, *** ***** ********* **** ******** in *** *********** **** ******* ***** & ********. *** ********** ******** ** ***** ******* ********** accused ** ************ ********* *** ***** in **** *****, **** *** **** ****** ******* including **** ***** *** **** *****. A ***** ****.* ******* *** *** **** ***** have **** ********.
Frost & ******** ** ********
***** & ******** *** *** ******* to ***** ******** *** *******, **** over ***** ****. ** **** ****** this ****** ** **** **.