Does This Smell Like “Funny Accounting” To You?

Some very unsettling news breaking late tonite from The Recorder.

It appears that in 2007 almost $9 million in profits it did not have may have been distributed to Heller Ehrman shareholders.  And almost $3 million in expense checks were held over to 2008 in order to boost 2007 numbers.

This is the contention in a just released article at The Recorder based on the Official Committee of Unsecured Creditors’ Second Interim Status Report just released.

“Funny” or not, someone needs to get to the bottom of this and fast.


6 Responses to “Does This Smell Like “Funny Accounting” To You?”

  1. 1 Anon2 11 August 2009 at 1:40 am

    Isn’t this what they call “cooking the books”?

  2. 2 Observer 11 August 2009 at 3:07 am

    Read the Creditors Committee’s report. Some of it is technical legal analysis. But what jumpss out is that the Committee is pursuing settlement discussions by which former shareholders would agree to return substantial sums to the bankruptcy estate. The Committee says that an outline of such a multi-party settlement might be put forward as early as September.

    There is some promise in that. Perhaps shareholders (several groups of whom are represented by sophisticated bankruptcy counsel) can be induced to return signficant settlement amounts to the estate without kengthy and expensive litigation. It seems we will know much more about this by some time in September.

  3. 3 Former Associate 11 August 2009 at 10:36 am

    There are some very disturbing allegations in this report. Surely this will put an end to any shareholder sympathizing. Clearly, Heller’s downfall was no surprise–and no accident. It should also undermine any WARN Act defense of unforeseeability.

    I am intrigued by the prospect of a September plan, with possible payouts in 2009, but I’m a bit skeptical that it will actually happen.

  4. 4 Karma 11 August 2009 at 2:07 pm

    Karma – what goes around..comes back around.

  5. 5 Another Legal Secretary 11 August 2009 at 3:41 pm

    Does anyone know whether this will affect the employees who received profit-sharing bonuses in 2008 in their 401(k) accounts? Will they be expected to return them?

  6. 6 Drama 11 August 2009 at 4:37 pm

    This is a never-ending black-hole mystery.

    1. No one is owning up to what’s really going on.

    2. Everyone is blaming someone else.

    3. Filing claims defeats the purpose if there’s no money and Heller was flat out broke from the get-go.

    4. The reality is, don’t hold your breathe for the money to get to your hands until..who knows when.

    5. Whoever is behind this from the beginning..will get their day.

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