January 24, 2005

EMS gives D'Addario the heave-ho

OTTAWA, ONT-Environmental Management Solutions' board of directors last week fired former chair and CEO Frank D'Addario. D'Addario resigned as chair last March, continuing as CEO until September 2004 when he resigned that post after an audit committee submitted a report to the Board outlining transactions between EMS and D'Addario and certain related parties. From that point until last week, he had served as vice-chair responsible for business development, having been instructed by the board to devote his full time and attention to the affairs of the company and to refrain from acting beyond the scope of his new role. After receiving the audit committee's report, EMS initiated corrective and remedial actions on matters to which it called attention, including indications of misappropriation of corporate funds, improperly disclosed related party transactions, and inappropriate arrangements with related parties. Based on this report, the company's auditors decided to expand the scope of their audit procedures in order to review the issues raised. The auditors presented an interim report to the board on January 11, 2005. D'Addario remains a director of EMS and he and certain related parties hold a 26% interest in the company. In addition, EMS reported that it has responded to a wrongful dismissal claim filed against the firm by D'Addario's wife, Ferne D'Addario.
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