Steven Laitman, the CEO of the UK interactive games and chat web
site e-district.net, has been sacked and the Serious Fraud Office
has been called in after irregularities were found in the company
accounts, according to a report today in The Times.
The company recently suspended Laitman, saying it had reason to
believe that he substantially overstated the figures for registered
users, page impressions and revenues. The Times reports that the
company is also suing him for damages for fraudulent
misrepresentation and breaches of his fiduciary duties. A court
order has frozen £10 million of Laitman’s assets pending a full
hearing later this week.
Laitman owns 44% of e-district.net. Trading in the company’s
shares was suspended last week at the Board’s request.
The company’s auditors, PricewaterhouseCoopers, are assisting
with the investigation but if overstatements of user numbers or
revenues are found to have existed at the time of the company’s
flotation in March 2000, PwC will be removed from the
investigation, according to a spokesperson.
