Former Shelton CEO to pay $1.5M to settle SEC probe
The Securities & Exchange Commission sued a software company formerly based in Shelton on suspicion of doctoring the books by $40 million over more than two years, with its former CEO to pay $1.5 million to settle the case.
The SEC claims Tangoe executives booked revenue between 2013 and 2015 for work it had yet to perform, with the company’s software used to account for telecommunications and networking expenses including corporate mobile phone accounts. At last report, Tangoe managed some $38 billion in telecommunications expenses spanning more than 7.5 million devices.
If the settlement is approved by a judge, former CEO Albert R. Subbloie will pay $1.5 million to settle the complaint, with former chief financial officer Gary R. Martino to pay $100,000; and former executives Thomas H. Beach and Donald J. Farias paying $50,000 and $20,000 respectively.
After working a decade at a call-center software developer, Subbloie co-founded Tangoe and led the company through May 2016 when the company announced his immediate retirement, with no reason given at the time.
In 2012 when Tangoe held its initial public offering of stock at $10 a share, the company reported Subbloie’s equity stake as worth more than $23 million, estimating his subsequent compensation over the three following years at nearly $12 million.
Subbloie’s LinkedIn page lists him today as holding a board seat at Budderfly, a Shelton company that offers an “energy as a service” option for companies in which it assumes payment of monthly utility bills and invests to achieve energy savings.
Tangoe was taken private last year by Marlin Equity Partners, which designated Parsippany, N.J. as Tangoe’s new headquarters and installed former IBM executive Bob Irwin as CEO. Tangoe continues to have a Shelton office at One Waterview Drive, where it had moved its headquarters last year from Orange.
Alex.Soule@scni.com; 203-842-2545; @casoulman