Barrington-area men face upgraded federal fraud charges

Expanded federal charges were lodged against two Barrington-area men in connection with an investigation into a Schaumburg company's purchase of a Florida-based tech firm.

Nandu Thondavadi, 63, of North Barrington, and Dhru Desai, 55, of Barrington, are facing new wire fraud charges, according to court papers. Their arraignments are slated for 10 a.m. Thursday.

They previously had been charged in 2016 with other crimes related to the financial reporting of their company, Quadrant 4 System Corp.

The charges stem from an investigation into the 2013 purchase of a Florida company by Quadrant 4, which provides software products and consulting services to health care and education groups.

Federal prosecutors said Thondavadi and Desai "engaged in a wide-ranging scheme to defraud Quadrant 4 shareholders" by inflating revenues and concealing liabilities by filing false reports with the U.S. Securities and Exchange Commission. The operators of the Florida company are also facing obstruction charges in relation to the case, according to authorities.

The two men face up to 20 years in prison if convicted.