E-district ousts chief executive

Interactive website e-district.net has given its chief executive Steven Laitman notice after discovering irregularities in its financial results.

E-district began proceedings against Laitman on 23 February, suing him for damages. He was served with an injunction and his assets were frozen. The company said it is investigating the facts, but is not yet aware of any misappropriation of funds.

A spokesman for e-district told Accountancy Age that the serious fraud office [SFO] had not been called in. “What has happened is that the fraud squad of the Metropolitan Police rather than the SFO has been informed. Whether they are investigating is not clear yet,” he said.

The company said it expected the investigation to be wrapped up “before the end of the week”, and would be making an announcement shortly.

Laitman was suspended on 19 February after e-district found that figures for registered users, page impressions and revenues had been exaggerated for an unknown period, which may include the whole of last year.

Chairman Frank Lewis has been appointed acting chief executive in the interim.

First published on accountancyage.co.uk