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Report: Vonage CEO's past woes won't block Vonage going public

Around VoIP circles, you keep hearing talk that the Securities and Exchange Commission might look askance at a move by Vonage to become a publicly traded company.The reason for that presumed stance, it is said, is because of past controversies surrounding Vonage CEO Jeffrey Citron.
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Written by Russell Shaw on

Around VoIP circles, you keep hearing talk that the Securities and Exchange Commission might look askance at a move by Vonage to become a publicly traded company.

The reason for that presumed stance, it is said, is because of past controversies surrounding Vonage CEO Jeffrey Citron.

But according to a report in today's edition of The Deal, that might not necessarily be so.

Here's their take:

"Vonage also faces potential questions from investors about Citron, its CEO," The Deal reports. "He resigned as CEO of Datek as the SEC was investigating allegations that he and other company executives fraudulently misused a Nasdaq trade order execution system that had been set up to help small investors. About a year later, he sold his stake in Datek for a reported $225 million.

"In January 2003," continues The Deal report, "he agreed without admitting guilt to pay about $22.5 million in penalties and disgorgement to settle the SEC charges. Under the settlement, Citron is permanently barred from associating with any broker or dealer. But a source familiar with SEC workings said Citron is not precluded from heading a publicly traded company."

 

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