Vitesse hit by subpoena, SEC probe

Troubled Vitesse (Camarillo, Calif.) late Thursday (May 18) said that it is being investigated by two separate entities: the U.S. Securities and Exchange Commission (SEC) and the U.S. Attorney’s office in New York.

The communications-chip maker has received a grand jury subpoena from the office of the U.S. Attorney for the Southern District of New York, “requesting documents from 1999 through the present referring to, relating to, or involving the granting of stock options.”

The company also announced that it has been notified by the Division of Enforcement of the SEC, which is conducting an investigation of Vitesse. The SEC has requested documents from January 1, 1995 through the present relating to the grant of stock options.

Vitesse said it plans to cooperate fully with the investigations.

Still, the troubles are mounting at the company. The communications-chip vendor on Wednesday (May 17) said that it has terminated three executives — including the CEO — amid a pending investigation.

Vitesse also named a new CEO, but the company has also expanded its investigation over its business practices and is now in apparent default at one of its lenders. Vitesse also received a notice under which the company is subject to be delisted from the Nasdaq stock exchange.

Three executives — Louis Tomasetta, chief executive; Yatin Mody, chief financial officer; and Eugene Hovanec, executive vice president — have been “terminated” as officers and employees of Vitesse. As previously reported, these officers had been placed on administrative leave by Vitesse “because of such individuals' involvement with issues related to the integrity of documents relating to Vitesse's stock option grant process,” according to the company.