FalconStor Software CEO Resigns Amid Payment ProbeFalconStor Software CEO Resigns Amid Payment Probe
FalconStor Chairman, President and CEO ReiJane Huai (pictured) has resigned, effective immediately, amid a payment probe at the storage company. The news rocked the Long Island-based company and its investors, because Huai and FalconStor are considered synonymous, and his storage expertise is well-known within the halls of major software companies. FalconStor's stock is down 22 percent as of noon eastern today. Here's the update.
September 29, 2010
Huai_ReiJaneFalconStor Chairman, President and CEO ReiJane Huai (pictured) has resigned, effective immediately, amid a payment probe at the storage company. The news rocked the Long Island-based company and its investors, because Huai and FalconStor are considered synonymous, and his storage expertise is well-known within the halls of major software companies. FalconStor’s stock is down 22 percent as of noon eastern today. Here’s the update.
According to a FalconStor press release:
FalconStor Software, Inc. (NASDAQ: FALC) today announced that its President, Chief Executive Officer and Chairman of the Board, ReiJane Huai, resigned from all of his positions with the Company, effective immediately…
Mr. Huai tendered his resignation following his disclosure that certain improper payments were allegedly made in connection with the Company’s contract with one customer.
FalconStor’s board appointed Eli Oxenhorn, (current board member), as non-executive Chairman of the Board, James McNiel (current Chief Strategy Officer) as interim Chief Executive Officer and interim President, and James Weber (current Chief Financial Officer) as Chief Financial Officer and interim Chief Operating Officer, the company added.
ReiJane Huai is well-known across the storage industry. He was previously CEO of Cheyenne Software, promoter of ARCserve backup and recovery software. CA Technologies acquired Cheyenne in 1996, and Huai joined CA in a VP role before leaving to launch FalconStor. Many of FalconStor’s top executives previously worked with Huai at Cheyenne and/or CA.
In recent months, FalconStor was working to promote its storage software to managed services providers. Eager adopters include an MSP focused purely on the legal vertical. Sources say that MSP effort will continue under interim CEO James McNiel.
FalconStor is very active across the IT channel, and has OEM relationships with Acer, EMC and Oracle’s Sun business, among others. The company also has technology partnerships with CA, Cisco, Dell, HP, Intel and Microsoft, among others. And FalconStor Channel Chief Wendy Petty is well-known within the VAR ecosystem.
The VAR Guy has reached out to FalconStor for additional comment about Interim CEO James McNiel’s view of the channel.
Disclosure: The VAR Guy worked briefly at Cheyenne Software in 1996.
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