Alibaba.com Ltd., the operator of China’s largest electronic-commerce website, announced that it’s CEO, David Wei resigned after a company probe found more than 2,000 subscribers engaged in fraudulent sales. Wei and COO Elvis Lee quit to take responsibility for the “systemic breakdown” in the company’s culture of integrity, though they weren’t personally involved in the fraud. Jonathan Lu, head of the Taobao.com affiliate will be Wei’s replacement.
According to the company, the frauds will not have a “material financial impact”. The frauds were first noticed by senior management in late 2009.
Via [Businessweek]
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