ERI’s John Shegerian Points to FTX Failure as Prime Example Why Qualified, Ethical Governance is Essential in Business

NEW YORK--(BUSINESS WIRE)--Nov 29, 2022--

In the wake of the massive FTX Crypto collapse, which many experts and analysts are referring to as “the biggest and most far-reaching financial scandal in recent memory,” John Shegerian, Chairman and CEO of ERI, the nation’s largest fully integrated IT and electronics asset disposition provider, has called for improved transparency in governorship in companies large and small.

FTX collapsed earlier this month after a run on deposits exposed a deep financial hole in the business. The company filed for bankruptcy, and its chief executive, Sam Bankman-Fried, resigned. The collapse has kicked off investigations by the Justice Department and the Securities and Exchange Commission focused on whether FTX improperly used customer funds to prop up Alameda Research, a trading firm that Bankman-Fried also founded.

The collapse has jeopardized the savings of hundreds of thousands of customers who deposited their crypto holdings on the FTX platform. The subsequent bankruptcy filing offered the first detailed look at FTX’s business and a disastrously high level of dysfunction.

“What happened with Sam Bankman-Fried and FTX should serve as a warning sign to all businesses,” said Shegerian. “When a company – and hundreds of millions of investor dollars – are entrusted to inexperienced, unsophisticated and unethical individuals, alongside poor leadership, compromised systems integrity and faulty regulatory oversight, the end result is always going to be a disaster. At ERI, we’re proud to be governed by an extraordinarily qualified Board of Directors that brings us radical transparency, relevant expertise, uncompromisingly ethical stewardship and a passion for our mission and industry.”

ERI’s Board of Directors is made up of:

• John Shegerian, ERI’s co-founder, Chairman and CEO;
• T.S. Choi, Head of Corporate Strategy and Business for LS MnM, one of the largest copper smelters in the world;
• Kevin Dillon, ERI’s co-founder, Chief Marketing Officer and Chief Sales Officer;
• Brendan Egan, founder and CEO of Simple SEO Group, an industry leading digital marketing and technology agency;
• Kate Fazinni, Director of Security Operations and Engineering at Ziff Davis; adjunct professor of cybersecurity at Georgetown University; and former cybersecurity reporter for The Wall Street Journal and CNBC;
• Ron Gonen, founder and CEO of Closed Loop Partners, an investment fund focused on closed loop and sustainable investments;
• Mark Stiffler, Vice President of the Asset Management Group at Alcoa, one of the world’s largest producers of aluminum, with responsibility for Alcoa's global real estate portfolio;
• Tammy Shegerian, ERI’s co-founder, President & Chief Revenue Officer;
• JB Straubel, founder of Redwood Materials, one of the largest circular supply chain companies with a focus on battery recycling, and former co-founder and CTO of Tesla;
• David Wang, Managing Director with TCW’s Direct Lending and Alternative Products Groups, an investment management firm with over $200 billion in assets under management.

ERIis the largest fully integrated IT and electronics asset disposition provider and cybersecurity-focused hardware destruction company in the United States. ERI iscertifiedat the highest level by all leading environmental and data security oversight organizations to de-manufacture, recycle, and refurbish every type of electronic device in an environmentally responsible manner. It is the first and only company in its industry to achieve SOC 2 certification for security and data protection. ERI has the capacity to process more than a billion pounds of electronic waste annually at its eight certified locations, serving every zip code in the United States. ERI’s mission is to protect people, the planet and privacy. For more information about e-waste recycling and ERI, call 1-800-ERI-DIRECT or visithttps://eridirect.com.

View source version on businesswire.com:https://www.businesswire.com/news/home/20221129005828/en/

Media contact: Paul Williams, 310/569-0023,paul.williams@eridirect.com

KEYWORD: NEW YORK UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: ENVIRONMENT TECHNOLOGY FINANCE SECURITY PROFESSIONAL SERVICES HARDWARE DATA MANAGEMENT CRYPTOCURRENCY RECYCLING CONSUMER ELECTRONICS

SOURCE: ERI

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