Alleged NCI embezzler identified
- By Mark Hoover, Nick Wakeman
- Jan 24, 2017
Washington Technology has confirmed the identity of the NCI controller who the company has accused of embezzling $18 million over the last six years.
WT found the name Jon L. Frank listed as controller in an April 2016 NCI filing with the Securities & Exchange Commission. The company confirmed that he is the individual they suspect of embezzlement.
He has been fired by the company.
NCI officials have declined to comment beyond the press release they issued on Monday.
The company says it has launched an internal investigation with the help of outside counsel and forensic accountants, including multiple authorities, some of which are federal agencies.
Frank allegedly embezzled $5 million in 2016 and $13 million over the prior five years, and these amounts of money were reflected as expenses in the company’s financial statements.
Since the disclosure of the alleged embezzlement, the company’s stock has dropped dramatically.
On Friday, before the announcement was made, the company’s stock closed on NASDAQ at $13.95 with trading volume of 15,083.
On Monday, after the announcement, the stock sank to $12.65 and trading volume was 84,219.
On Tuesday, the stock stabilized and closed up 10 cents at $12.75 with trading volume at 23,131, closer to what the stock historically sees.
Mark Hoover is a senior staff writer with Washington Technology. You can contact him at firstname.lastname@example.org, or connect with him on Twitter at @mhooverWT.
Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.