GE Capital Accuses PTC of Mobster Behavior in Japan
It seems the axiom “when it rains, it pours” also applies to acid rain—at least for PTC. We reported recently on their missteps in the marketplace and the resulting spanking at the hands of the stock market. Now it seems PTC is accused of faking sales in Japan.
GE Capital Leasing Corp. is suing PTC for $141 million, alleging fraudulent purchases and deliveries of software in Japan. The complaint alleges that PTC committed fraud, made negligent misrepresentations, and violated the Racketeer Influenced and Corrupt Organizations (RICO) Act. That’s the same body of law used to put mobsters behind bars. Pretty serious stuff.
When RICO calls, you always listen.
As the Boston Globe reports:
The saga allegedly began in 2003, when GE Capital Leasing agreed to finance electronics company Toshiba's purchase of software made by a company called Japan Novel, according to the complaint. An employee at Toshiba returned the software and used the money to pay for an earlier software purchase from PTC that had been made without his company's approval, the complaint said. Fraudulent transactions allegedly occurred 10 other times, ending in April 2006.
"For more than three years PTC participated in a scheme to defraud GELC by faking numerous large sales and deliveries of its CAD software to Toshiba while knowing and concealing from GELC that Toshiba had not authorized any of these large purchases," the lawsuit stated.
“PTC pretended to sell a lot of valuable equipment to Toshiba and induced GE to send the money for it," [said John Markham, lawyer for GE Capital Leasing.] "It turns out many of these supposed sales—according to the complaint—were not actually made, but GE paid the money."
PTC President "Rocco" Harrison
carefully ponders the company's next move.
Full details on Thursday in CADCAMNet
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