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CHICAGO - Trying to recover from a major accounting scandal, Thomas Havey, one of the accounting industry's largest firms, is expected to restructure its operations.
Havey, based in Chicago, is expected to reorganize as a result of guilty pleas entered in U.S. District Court last summer by two former partners for their roles in accounting fraud at the International Association of Iron Workers, a client of the firm's Washington practice.
In a plea bargain, former partner Francis J. Massey pled guilty to assisting top officers of the fund "in falsifying Form LM-- 2 reports from 1992 to 1999 to hide in excess of $1.5 million in personal dining, drinking and entertainment expenses," according to the Department of Labor. Separately, former partner Alfred S. Garappolo pled guilty to "knowingly and willfully concealing and failing to disclose" to investigators information regarding the embezzlement of $33,000 from the fund.
Havey issued a statement decrying the former partners' actions as running "completely counter to the values and code of conduct that have made Thomas Havey a trusted and respected accounting firm." It further said that the "senior...