Company Triggered the Federal Investigation after Discovery of Financial Irregularities in 2008 and Has Actively Cooperated Throughout the Process Leading to Charges
SAN FRANCISCO — (BUSINESS WIRE) — November 23, 2009 — Bricsnet, a leading provider of solutions for real estate, project and integrated workplace management, announced today that it strongly supports the prosecution of its former CEO on charges of embezzlement, and will continue to work with investigators and prosecutors toward the successful completion of the criminal case.
Bricsnet officials asked the Federal Bureau of Investigation to investigate in 2008 after discovering that more than $1 million in corporate funds were missing. In the year that followed the investigation request and the immediate dismissal of then-CEO Ethan Farid Jinian, Bricsnet has both stabilized and significantly improved its financial operations, said Chairman and CEO Hector Rodriguez.
Rodriguez, who assumed the CEO role in September 2008, after Jinian was terminated, said that today, the company shows the strength resulting from the corrective actions implemented 14 months ago: Bricsnet is now under the direct operational control of its primary investor, Torimbia SL, a Madrid-based real estate holding company, and Torimbia has directed the implementation of solid financial practices that ensure the company’s position and security moving forward.
”Bricsnet has shown through 21 years of operations that it is a company that adapts through constant changes in business practice and technology,” said Rodriguez. “We took quick, transparent and decisive action to correct irregularities in our finances, without disrupting our business in any way. Our first commitment is always to our customers and we are driven by the strong business ethics and uncompromised transparency of a long-running and successful family-owned holding group of companies. We offer our clients the industry’s most flexible and user-friendly solution for workplace management, and we adhere to those same values in our internal operations.”
Ethan Farid Jinian, Bricsnet’s former CEO, was dismissed in September 2008 following an internal company investigation into financial irregularities; the matter was promptly referred to the Federal Bureau of Investigation. On November 18, 2009 Jinian was arrested at San Francisco International Airport, after being indicted by a federal grand jury on November 12. He has been charged with embezzlement and is being held without bail.
Throughout the investigation, the company maintained normal operations, while augmenting its workforce and executive team with executives from the parent company Torimbia. Bricsnet is now an unconsolidated subsidiary and part of Torimbia’s strategic industrial portfolio.
Mr. Rodriguez assumed operational leadership after seven years serving on the board of Bricsnet, including three years as chairman. He co-led the group that bought the Bricsnet business from a predecessor company in 2002 and has led all subsequent capital rounds in Bricsnet, which established Torimbia SL as the principal investor in the company. In August 2008, Torimbia established Bricsnet as a subsidiary within its circa USD 1 Billion privately held and family-owned holding group.
Bricsnet’s business was founded in 1986 and helps large corporations improve profits and Sarbanes-Oxley requirements by more effectively managing all aspects of their workplace (including buildings, land, space, people, assets, and systems). Its flagship product, Bricsnet Enterprise, a leading Integrated Workplace Management System -- along with an expert advisory services group -- provides fast, pragmatic and innovative solutions to increasing shareholder value.
David Karpook, 415-321-2654