Accounting & Tax

Bank Removes Two Finance Execs Amid Accounting Probe

New CFO moves up; auto leases caused problems.
Stephen TaubAugust 12, 2004

Officials at Huntington Bancshares Inc., which has been the subject of a Securities and Exchange Commission probe since last year, report that CFO Michael McMennamin and controller John Van Fleet, resigned from their respective posts.

Both executives will remain with the company. Donald Kimble, who joined the company earlier this year as an executive vice president in finance, was named CFO and controller.

Regulators have been scrutinizing accounting and disclosure issues since June 2003, according to published reports. The issues have included how the Columbus, Ohio-based company accounted for automobile leases in fiscal 2002 and earlier.

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Huntington officials expect to settle all matters related to the investigation, which would likely involve the entry of an order requiring the company to comply with various provisions of the Securities Exchange Act of 1934 and the Securities Act of 1933, along with the imposition of a fine and other possible measures.

“As the chief executive officer, I accept responsibility for matters that occur on my watch,” said Tom Hoaglin. He added that Huntington has already taken a number of significant measures to enhance its accounting controls and procedures in the aftermath of related restatements and in response to issues that have emerged during the SEC’s investigation.

“Nevertheless, we expect to take an additional look at these issues under the auspices of an independent consultant review,” he added. “As a company, we are committed to full, fair and transparent disclosure.”

Before joining Huntington, Kimble was executive vice president and controller of AmSouth Bancorp and held various subsidiary CFO or accounting positions at Bank One Corp.

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