New Perth CEO for DigitalX

DigitalX has re-energised its board with the appointment of a Perth-based CEO as the software company seeks to move forward from revelations earlier this year that its founder is facing charges in the US for fraud.

Leigh Travers, a former investment adviser at Euroz Securities, was appointed to the board of DigitalX as an executive director in July after the company’s founder, Perth entrepreneur Zhenya Tsvetnenko, tendered his resignation due to his indictment by US prosecutors for participating in a scheme to defraud mobile phone customers.

Mr Travers has now taken the helm as chief executive of the business while also retaining his current director position.

Alongside this, DigitalX co-founders Alex Karis and William Brindise have stepped down from the board, with Mr Karis to continue to as an adviser to the company on a formal basis.

DigitalX has also raised $1.62 million from investors with the assistance of Merchant Corporate, while its new board has contributed a combined $350,000 out of their own pockets.

That follows a $529,015 capital raising in early September.

Mr Tsvetnenko was charged in the Manhattan Federal Court in late July with conspiracy to commit wire fraud, mail fraud and money laundering, each of which carries a maximum sentence of 20 years in prison.

Following those revelations, Mr Tsvetnenko, a Business News 40under40 award winner in 2011, relinquished his positions from the companies he controlled, and initiated a share buyback to remove all shareholdings in those companies, including DigitalX.

DigitalX shares were 2 per cent higher to 4.9 cents each at the close of trade.