POST Online Media Lite Edition



 

NCI finds controller stole $18m from company over six years

Staff Writer |
NCI, a provider of information technology and professional services and solutions to U.S. Federal Government agencies, announced that, based upon preliminary findings, it has discovered that its controller, acting alone, embezzled money from the company.

Article continues below






The employment of the controller has been terminated, and the company has commenced an internal investigation with the help of outside counsel and forensic accountants.

While the investigation is ongoing, the company believes that its former controller embezzled approximately $18 million over the last six years. NCI is working with legal counsel and cooperating with federal authorities to determine the best course of action from a legal, regulatory and recovery perspective, and will provide further information as soon as practicable.

NCI believes that after direct recovery from its former controller and after giving effect to available insurance coverage, it will be able to recover a large portion of the embezzled funds.

Of the estimated $18 million of embezzled funds, the company believes that approximately $5 million was taken during 2016 and the remaining $13 million was taken over the prior five years.

The company’s preliminary findings indicate that these funds were reflected as expenses in the company’s financial statements. These expenses were treated as allowable indirect costs on its government contracts but should have been classified as unallowable costs.

The company has concluded that the unaudited interim financial statements for the nine-month period ending September 30, 2016, contain material errors related to the theft in that period.

Therefore, the unaudited financial statements contained in the company’s Quarterly Reports on Form 10-Q for the first three quarters of 2016 should not be relied upon by investors.

As part of the completion of its financial reporting process for the fiscal year 2016, the company will provide amended financial results for that nine-month period.

The company has performed a preliminary analysis of the financial effect of the estimated $13 million in theft losses incurred in years before 2016.

Based upon preliminary findings, the company believes that it is unlikely that there are any material misstatements relating to the embezzled funds in the financial statements for fiscal years 2015, 2014 and 2013. At this time, the company is not aware of any other possible misstatements in the financial statements.

If any material errors are discovered through the active investigation and forensic analysis, the company will make timely disclosure at that time.

In addition, as part of the investigation, the company is reviewing its internal controls over financial reporting.

Although the investigation is ongoing, the company believes that material weaknesses existed in its internal controls during the relevant periods during which the embezzlement occurred.

The company is implementing steps to strengthen its internal controls and to remediate the weaknesses that it has identified.


What to read next

CFTC finds that Bank of Tokyo-Mitsubishi engaged in futures spoofing
Dante S. Giovannetti, his companies to pay $2.7m over commodity pool fraud
Two Israeli companies fined for off-exchange binary options trading, fraud

U.S.: Rain and higher elevation snow will continue

 
A deep upper-level trough will move onshore over most of the West Coast on Sunday, moving to the Upper Great Lakes to the Southern Rockies by Tuesday.
 
 

Latest

United flight from Chicago to Vegas makes emergency landing in Nebraska
Kerry pleads guilty and agrees to pay $19.228 million in connection with 2018 salmonella outbreak
Brazil sinks rusting old French aircraft carrier in Atlantic
China allowed truck entry on border with Tajikistan

NEWS

Egypt's former prime minister dies at 67

Longest-serving president of Pakistan Pervez Musharraf dies
5.5-magnitude earthquake hits northern Chile
Chile expands emergency as deaths from wildfires rise
Fishing boat capsizes in South Korea, 9 missing
Over 200 evacuated from Vorkutinskaya coal mine in Komi due to smoke
 

BUSINESS

South Africa to construct new power transmission lines in northern province

Spain suffers amid severe shortage of drugs
Free travel will be extended to even more of London’s lowest paid transport workers
North Adriatic Hydrogen Valley project receives 25 million in grants
Croatia to pay MOL $235 mln in settlement of arbitration case for INA
€25 million EBRD loan to support new tram line in Sarajevo, Bosnia and Herzegovina
 

Trending Now

110,000 more users affected in LG Uplus’ data breach

Egypt's former prime minister dies at 67

Viatel Technology to create 50 Irish tech jobs

Brazil sinks rusting old French aircraft carrier in Atlantic


POLITICS

India to ban hundreds of Chinese-linked betting and loan lending apps

UK and coalition partners announce price caps on Russian oil products
Fiji ends training and exchange agreement with China
France mulls extending nuclear reactors' lifespan
PM: Decisions by Commission for Emergency Situations help Moldova get out of winter with dignity
Denys Shmyhal: We expect duty-free trade with the EU to be extended until the end of 2024
 

Today We Recommend

Fiji ends training and exchange agreement with China


Highlights 

Viatel Technology to create 50 Irish tech jobs

Aon Q4 income decreased 24%

ASSA ABLOY Q4 sales increased by 28%


COMPANIES

110,000 more users affected in LG Uplus’ data breach

Viatel Technology to create 50 Irish tech jobs
Ethiopian Airlines inaugurates second aviation academy campus in Hawassa
Statkraft and INEOS Inovyn sign new long-term green power agreements
Portugal's Parliament approves inquiry into TAP airline
Iberdrola launching new call for master's scholarships for Spain and UK
 

CAREERS

Satu Rautavalta appointed new CEO of Pimatic

Exothera appoints Darren Leva as chief business officer
Vesta taps Shimon Steinmetz as CFO
Bruno Ultra Barcelos appointed managing director of Ethypharm UK
Syntach names Patrick NJ Schnegelsberg as new CEO
Chiesi appoints Giuseppe Accogli as new group CEO
 

ECONOMY

U.S. employment spikes in January, unemployment down

U.S. services PMI jumped
Türkiye inflation higher than expected at nearly 58%
West Virginia January revenue surplus continues to show opportunity for tax cuts is now
Indonesia: Inflation decelerates in January
Germany's foreign trade balance sees surplus of 10.0 billion euros in December 2022
 

EARNINGS

United States Steel Q4 earnings $174 million

Skechers Q4 sales increased 13.5%
Bosch posts sales growth
Cigna income $6.7 billion
Aon Q4 income decreased 24%
ASSA ABLOY Q4 sales increased by 28%
 

OP-ED

Micromanaging is the worst enemy of efficiency and teamwork

Niger set to monetize massive gas reserves through Saharan natural gas pipeline
Putting the brakes on EV folly that choked the market
Oil discovery in Kavango Basin may mean huge benefits for Namibians
Cape Town and Dubai battle over Africa's energy future
Is America going to lose its superpower status?
 

AGRIFISH

Free practical forestry training courses available in UK

Hong Kong suspends import of poultry meat and products from Kagoshima Prefecture, Japan
Share of Russian agricultural exports to friendly countries grows to 82% in 2022
Ministry of Agriculture: Yangtze River fishing ban sees positive progress
Netherlands: Gross seed onion yield down 17.2 percent
Price growth led to record start for Norwegian seafood exports in 2023
 

LEADERSHIP

Lucky CEO means bad luck for hiring company

Product images could boost food pantry use
The madness of fast service: I want it now!
How to build a resilient brand
Only 32% of employees believe their pay is fair
Corporate duty waivers limit organic company growth and innovation
 

CRIME

UK: Serious Fraud Office secures three convictions in $500 million trade finance fraud

AG for District of Colubia: $1,950,000 available for eligible Drizly drivers as result of tip-theft investigation
North Carolina: 52 stores pay fines for price scanning errors in 33 counties
EAO issued third fine for Coastal GasLink project
Dutch central bank fines cryptocurrency exchange Coinbase 3.3 mln euros
Bloomberg to pay $5 million for misleading disclosures about its valuation methodologies for fixed income securities
 

Magazine

TRAVEL

Legend Rock Petroglyphs in Wyoming, history right in front of you

La Chandeleur in Paris: Crêpe Day for all of you
Tru by Hilton Monterrey Fundidora hotel opens in Mexico
IntercityHotel Berlin Airport BER opens
Art After School, the perfect way to spark imagination in your child
The world's biggest food fair in Berlin you don't wanna miss
 

SEA, LAND, AIR

2024 Range Rover Velar, pure greed and distraction

Honda Pilot TrailSport, fully equipped SUV with great ground clearance
2024 Corvette E-ray, electrified 4WD
Jaguar I-PACE is now more distinctive
2023 Toyota Prius expected this January
2023 Lincoln Corsair, advance features and ActiveGlide
 

DESIGN

Curved sofas, elegant and gentle

Solios watches, from nature to luxury
Coats of faux fur, but not of faux style
Redifining kitchen space and experience with workstations
Dinning sofas, a soft addition to a modern dinning table
Patchwork carpets, vintage Persian carpets made with unparalleled skill
 

GADGETS

Samsung Galaxy S23 smartphones, cameras with possibility to make calls

Harman Luxury Audio introduces new JBL Classic Series
KEF KC62, audio excellence and design ingenuity
Panasonic announces flagship OLED TV MZ2000
McIntosh MC451, 150 Watt vacuum tube and 300 Watt solid state amplifier
Headonia 2A3, luxury headphone amplifier that comes with gloves
 

HEALTH

Urinary incontinence, a condition that shouldn't be embarrassing

Synthetic opioids will be banned as UK government acts to stop drug deaths
Japan gives priority review status to Alzheimer's drug developed by Eisai, Biogen
Working group proposes on how to make Finland tobacco-free by 2030
Study: Merck COVID-19 pill linked to virus mutations
South Africa authorises roll out of COVID-19 boosters to fight Omicron variant
 

MEANTIME

Astronomers observe light bending around an isolated white dwarf

Webb telescope catches early galaxy formation in action
Straigh and gay men both prefer masculine men for important jobs
Green comet to visit Earth after 50,000 years
Astronomers captured spectacular, ongoing collision between at least three galaxy clusters
NASA system predicts small asteroid to pass close by Earth this week