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Huron Consulting Group (HURN -68%) gets hit with a slew of downgrades following Friday's...

Huron Consulting Group (HURN -68%) gets hit with a slew of downgrades following Friday's disclosure that it will need to restate its 2006-2008 earnings due to accounting errors, leading to an SEC probe and the resignation of its CEO/CFO. It's a mess for sure, but Notable Calls thinks it falls short of fraud.
Comments (2)
  • levin70
    , contributor
    Comments (931) | Send Message
     
    Straight out of SEC Staff Accounting Bulletin 5T. If the CEO/CFO decided on a policy of don't ask don't tell then it sort of skirts the fraud issue, but it would then lead to issues of not doing their jobs. Why they decided to quit first I would assume.

     

    Regards
    3 Aug 2009, 11:23 AM Reply Like
  • predictorman1000
    , contributor
    Comments (215) | Send Message
     
    This is headlined as an accounting restatement (and it is) but looks like fraud. Who are the employees that get cash from the the owners of acquired companies? They must be relatively high up if they are in a postion to guarantee continued employment for people who must be senior level employees.

     

    The CEO and CFO (assuming they are not involved) must be clueless, or at least encourage (poor tone at the top, to use SOX-speak) an environment where people think this is okay.
    3 Aug 2009, 11:58 AM Reply Like
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