Risk Management

CFO Punished for Wire Fraud

The former finance chief, whose unauthorized funds transfers caused improper accounting, won’t be working for any more public companies.
Stephen TaubJanuary 28, 2008

A federal court has entered a final judgment against the former CFO of Q Comm International — now called Emida — for committing wire and accounting fraud.

The ex-CFO, Michael Openshaw, agreed without admitting or denying the allegations to be barred from serving as an officer or director of a publicly held company.

From September through December of 2004, Openshaw completed five unauthorized bank wires, transferring a total of $1.525 million to a Q Comm vendor, according to the Securities and Exchange Commission.

Openshaw allegedly wired these funds without approval and without disclosing the transfers to the other members of Q Comm’s management or its auditors, the SEC said.

He also was accused of concealing the transfers through improper accounting entries and by altering documents.

The SEC asserted that Openshaw’s acts caused Q Comm’s financial statements for 2004 and the first quarter of 2005 to be materially misleading and to deviate from generally accepted accounting principles.