Moore Wallace Cleared Of Misconduct Charges
Investigation into accounting practices ends, while merger with RR Donnelley continues.
Staff -- graphic arts online, 3/1/2004
NEW YORK CITY—PricewaterhouseCoopers LLP completed its investigation into alleged accounting misconduct at Moore Wallace and found no support for allegations made against the company. PricewaterhouseCoopers reported its results to the audit committee of Moore Wallace's board of directors and closed the investigation.
The investigation was triggered by an anonymous letter received by the company in late December 2003, alleging misuse of acquisition-related restructuring charges and misconduct in other accounting actions.
In its report to Moore Wallace's board, the accounting firm recommended improving documentation of restructuring charges, noting that there was no centrally documented plan for corporate restructuring activities.
However, investigations by the U.S. Securities and Exchange Commission and the U.S. Attorney's Office for the District of Connecticut are still pending. Moore Wallace officials report they are cooperating with these government authorities.
Still, these events have not stalled Moore Wallace's merger with Donnelley. In a meeting held late last month, both company's shareholders approved the deal.
During the investigative proceedings, Moore Wallace suspended Mark Hiltwein, its chief financial officer, with pay, pending the results of an internal investigation, for providing false documents to PricewaterhouseCoopers auditors. The documents had no effect on the outcome of the investigation
Reportedly, Hiltwein directed another member of the accounting staff to send PricewaterhouseCoopers a misdated memo about Moore Wallace's restructuring processes and plans. The memo was dated May 2003, but was created by Hiltwein in February 2004. The other accounting staff member was suspended with pay, and then reinstated.
