» VIEW ALL POSTS Jun 16 2008   8:09AM GMT

Alleged SAP partner arrested: Beware of fraud



Posted by: JackDanahy
Tags:
SAP

Nilesh Dasondi — President of Edison, New Jersey’s Cygate Software IT services firm — was recently arrested, along with several of his Indian employees, for defrauding the U.S. government. Dasondi is charged with bringing Indians into the U.S. on H-1B visas and putting them to work in occupations other than technology, in exchange for a cut of their earnings. Dasondi claims, on the 2007 Web site detailing his ambitions to serve on Edison’s Council, to be an SAP Americas partner, and was in the past an SAP programmer himself.

Dasondi managed to post $800,000 bail to free himself back on Thursday, and is now under house arrest pending the next stage of his case. According to reportage from the New Jersey Star-Ledger, Dasondi employed eight Indians between 2003 and 2007, charging them $850,000 in exchange for sponsoring them to come to the U.S. under fake H-1B paperwork. The money was used to set up phantom payrolls and health insurance, with Dasondi keeping the rest. Authorities arrested Dasondi’s “employees” all across the country, including locations in New Jersey, New York, and Arizona.

In the wake of the arrests, it is worth wondering A)how many operations like Dasondi’s haven’t been discovered yet and B)why SAP remains so passive about taking action against people who dilute the value of SAP’s ecosystem. After all, Dasondi’s political Web site has long claimed that he is responsible for a “strategic alliance with SAP America” among other companies. However, Cygate’s name doesn’t appear on SAP’s Web sites. In SAP’s place, I would appoint someone to actively scour the Web for people who attempt to falsely associate their companies and/or services with SAP.

While it is naturally the job of the government to enforce the law, as in this case, it is long past time for SAP, Microsoft, and other tech giants to act more aggressively against people who are using their names and brands in order to perpetuate different kinds of fraud.

Demir Barlas, Site Editor

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