BUZZ-Telit: CEO Cats resigns after US indictment revealed

** Telit CEO Oozi Cats has resigned after the company confirmed an indictment in the US for mortgage fraud was "knowingly withheld" from advisers

** Cats had taken a leave of absence on August 9 after it emerged he was accused by a Boston court in 1992 of being part of a "land flip" scheme that bought and sold properties at grossly inflated prices in order to take out fraudulent mortgages, court documents seen by Reuters show

** Telit FD Yosi Fait to continue as interim CEO; co plans to appoint three new board members that will include current chairman Chicco Testa stepping down from his role, though he could remain on the board

** Co says the episode is a source of "considerable anger" to the board

** Telit also responds to a Reuters story from March regarding the company's involvement in a bankruptcy in Italy

** Says the investigation into the collapse of BAMES is in a preliminary stage and that it considers any possible legal action "without merit"

** Shares (Berlin: DI6.BE - news) rise 11.7 pct on Monday but are still down nearly 50 pct since it reported a shock H1 loss on August 7