Company Execs Fired, Reassigned Over Accounting Irregularities
CHICAGO (AP) _ Chicago and North Western Holdings Corp. has fired four employees, including two company officers, over accounting errors and irregularities that caused the company to misstate profits last year.
The Chicago-based company is the holding company for the Chicago and North Western Transportation Co., a leading railroad freight hauler.
Company officials said in a written statement Friday that an investigation by auditors found the company had overstated its income in fiscal periods throughout 1993 by $3.2 million. That was offset, however, by understated earnings in 1991-1993 of about $2.4 million.
The company fired Thomas Tingleff, senior vice president for finance and accounting, and R. Scott Morgan, vice president and controller. C&NW said they had nothing to do with the errors and irregularities but were fired for the their handling of the matter.
Calls to the company seeking further comment were not immediately returned. The statement said the problems were mostly the result of improper recording of certain operating expenses.
Two other employees also were fired, and Robert A. Jahnke, senior vice president of operations, was being reassigned to senior vice president of planning, the company said.
There was no telephone listing in Chicago for Tingleff, Jahnke or R. Scott Morgan.
″Although the amounts involved are small and not material to the company’s financial results for the periods affected, we take this matter very seriously″ said Robert Schmiege, the company’s chairman and chief executive. ″We have taken decisive steps to prevent any recurrence.″
The company said it expected to report increased first-quarter earnings next week.