SEC v. Subramanian Krishnan, Case No.: 12-CV-2495 PAM-JJG (D. Minn.).  On September 28, 2012, the SEC announced it had filed a partially-settled enforcement action against Subramanian Krishnan.  Krishnan was the former CFO of Digi International, Inc. (“Digi”).  Corporate funds were used to pay for unauthorized travel and entertainment expenses.  Krishnan authorized the expenses for Digi employees which caused the Company to file inaccurate reports.  He also did not enforce Digi’s internal controls, failed to reveal inaccurate reports, and wrongly certified that he evaluated the effectiveness of Digi’s internal controls and disclosed they were effective.

Without admitting or denying the allegations, Krishnan agreed to be enjoined from future violations of Section 17(a) of the Securities Act, and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.  He also agreed to injunctions against future violations of Sections 13(a) and 13(b)(5) and Rules 12b-20, 13a-1, 13a-13, 13a-14, 13b2-1 and 13b2-2 thereunder of the Exchange Act and from aiding and abetting violations of Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act.  Krishnan agreed to be barred from serving as an officer or director of any issuer with the length of the bar, and the amount of disgorgement, prejudgment interest, and civil penalty to be determined by stipulation of the parties or by motion of the Commission at a later date.