BUZZ-Telit: CEO Cats takes leave of absence after US indictment emerges

** Telit CEO Oozi Cats has taken a leave of absence after it emerged he was indicted for a mortgage fraud in the US in the 1990s

** Israeli Cats 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

** An arrest warrant for Cats was issued under an alternative translation of his name, Uzi Katz, but the CEO was never detained

** The case against Cats was dismissed in 2006, according to the documents

** In a statement Telit said it had appointed independent solicitors to review the case, but said it was unconnected to the company's operations

** Its shares were down 23 pct following the news on Wednesday

** Cats is also under investigation by Italian authorities over his role in the collapse of Italian electronics manufacturer BAMES

** Telit has been a target of short-sellers, who have questioned the company's profitability and management

** Four long-term shorts have been joined in recent days by two US funds, Leucadia and Wellington, according to regulatory filings. At 13.3 pct, short positions hit an all-time high on Tuesday, making the company by far the most shorted stock on London's AIM index

** Telit's shares fell by a third on Monday after the company reported a shock loss for the first half of the year