The CFO of ABX Air Inc., Duane Kimble, agreed with the air-cargo company that he would take an immediate personal leave of absence from the after being informed by the Securities and Exchange Commission that the agency is considering bringing a civil action suit against him.
The warning to Kimble concerns alleged securities-law violations in connection with his service with a previous employer, Cincinnati-based Sight Resource Corp., where he served as CFO from November 2001 through October 2003.
None of the allegations against the finance chief involve ABX Air, where Kimble had been CFO since last December. Earlier this week, the ABX board appointed Quint Turner to act CFO in Kimble’s absence. Turner is the current vice president of administration and principal accounting officer of ABX.
Sight Resource filed for bankruptcy on June 24, the same day company officials revealed that the optical products and services company was the subject of “an informal inquiry” by the SEC. Executives also announced that the company will restate its financials for the first three quarters of 2002, and that it may restate results for the fiscal year end of 2001.
The Sight Resource audit committee has already launched an investigation into the company’s inability to prepare financial statements. The probe will look at whether the failings are the result of system error, errors in judgment, negligence, intentional action, or another cause. The investigation also covers a review of the company’s internal controls over financial reporting.
Officials at Sight Resource previously admitted that internal controls appear to have been inadequate and should be strengthened.