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Cambridge Analytica’s former CEO has been banned from managing organisations for seven years following the Facebook data scandal that forced the company into termination.
Early in September, former Cambridge Analytica CEO Alexander Nix, 45, signed a disqualification undertaking over the scandal that involved the company stealing private data from Facebook users, Tech Crunch reported. The government has accepted the disqualification undertaking.
Nix’s ban from running companies begins next month, and he will not be allowed to manage any businesses until 2027.
Britain’s Insolvency Service has ruled that the former Cambridge Analytica CEO is banned from managing companies after the business’ parent company, SCL Elections, and other businesses worked together to offer conceivably unethical services to clients.
“Effective from 5 October 2020, Alexander Nix is disqualified for seven years from acting as a director or directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company,” the U.K. Insolvency Service said in a statement announcing the ban, according to Engadget.
Nix and Cambridge Analytica became infamous following a string of shady business dealings and a massive Facebook data scandal.
In 2014, Cambridge Analytica was alleged to have participated in a Facebook data scandal that involved a breach of 87 million users’ personal information, the New York Post reported. The company refuted that it used the data for the 2016 Trump campaign, but a few former employees contradict that.
According to the New York Post, Facebook CEO Mark Zuckerberg has said it was possible the Facebook data scandal was associated with a Russian propaganda campaigns.
Tech Crunch reported that during the height of the Facebook data scandal, the Cambridge Analytica CEO was suspended after undercover reporters filmed him bragging about spreading fabrications and implicating politicians to satisfy clients’ requirements.
Cambridge Analytica and other related businesses filed for bankruptcy and closed in 2018 over voter manipulation associated with the Facebook data scandal.
The former Cambridge Analytica is reported to have used a personality quiz to collect private information from millions of unsuspecting users in the Facebook data scandal, according to Engadget. The scandal quickly initiated investigations in the U.K. and the U.S. Shortly after, Nix was ejected from his CEO position.
The former Cambridge Analytica CEO doesn’t deny the company participated in allegations of bribery stings arranged to reveal corruption, plans for voter disengagement, digging for information to defame opposing political candidates and anonymous rumour spreading, according to Tech Crunch.
Mark Bruce, chief investigator with the Insolvency Service, expressed in a statement that its investigations show SCL Elections had continually provided disreputable political services to clients over the years it was in business.
In a statement shared with CNBC, former Cambridge Analytica CEO Nix said many of the investigations into his company’s operations did not prove any laws were broken.
“In relation to my undertakings to the Secretary of State, I have made no admission of wrongdoing and importantly the Government did not seek to press that I had breached any laws,” Nix said.
He added: “After two and a half years of investigations, based on a litany of false allegations originated by a disgruntled former employee, I decided to bring this chapter to a close and avoid an unnecessary lengthy and expensive court case.”
Do you think the Cambridge Analytica CEO’s ban from running businesses for seven years is fair? Tell us what you think in the comments.
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