Risk Management

CFO Leaves, Feds Open Probe

Shipping company Horizon Lines is being investigated over its pricing practices.
Stephen TaubApril 18, 2008

A shipping company announced, two weeks after its CFO resigned, that it has been served with search warrants and a grand jury subpoena related to an investigation of pricing practices of ocean carriers operating in Puerto Rico.

Authorities took computers and boxes from the headquarters of Horizon Lines Inc., the Associated Press reported. The company said in a press release, “Horizon Lines has not been informed of the specific subject matter of the inquiry, being conducted by the U.S. Department of Justice’s Antitrust Division.”

Horizon announced in early April that M. Mark Urbania was leaving after four years as CFO to pursue opportunities in private equity, where he had been before joining Horizon. He was replaced by Michael Avara, who had been the company’s vice president of industry relations and treasurer. Avara has spent more than 20 years in various accounting and finance roles at CSX Corp., Sea-Land Service Inc., and Horizon. Before that was with Coopers & Lybrand for three years.