John N. Milne, president and CFO of the Greenwich, Conn.-based firm, "failed to perform his duties" when he refused to answer recent boardroom questions, says the company in a statement. A special board committee had found possible evidence that equipment sale-leaseback transactions were wrongfully posted as profit.
United says the clues "suggest" that the accounting "for at least some of these transactions" was incorrect. Directors questioned up to 40 employees, including Milne, who refused to talk, according to Chuck Wessendorf, company spokesman. The board gave Milne 30 days or face termination. Wessendorf says the special committee has reached "no final conclusions" as yet.