NEW HARTFORD, N.Y. — PAR Technology Corp.’s CEO says she is “confident” that the company’s former CFO was “acting alone” in making unauthorized investments, before the company fired him nearly three weeks ago.
Karen Sammon, company president and CEO, made the comment during PAR’s earnings conference call on Wednesday afternoon. A BJNN reporter listened to a recording of the call on Thursday.
PAR Technology (NYSE: PAR) had announced on March 14 that it fired CFO Michael Bartusek. He was “terminated for cause” in connection with unauthorized investments “made in contravention of the company’s policies and procedures involving company funds,” according to a PAR news release.
“This activity does not involve customer billings, accounts receivables, or accounts payables, nor our operations in any way,” Sammon said in her remarks on the Wednesday conference call.
The funds totaled less than $900,000. The unauthorized investments occurred during the period between Sept. 25 and Nov. 6 of last year, according to the release.
“Once I became aware of the situation, I notified the audit committee, which took the necessary steps quickly and decisively,” Sammon said.
The committee and the PAR Technology board of directors approved an internal investigation of the matter, which the committee supervised. The investigation is over, but PAR Technology continues to “pursue recovery of the transferred funds,” Sammon added.
“In lieu of the situation, we wrote down $776,000 in the fourth quarter of 2015 … the actual amount of the unauthorized investments,” the PAR Technology CEO added.
PAR Technology reported the matter to federal law-enforcement agencies, including the U.S. Securities and Exchange Commission. It’s also conducting a “thorough review” of its internal controls, according to the release.
The firm’s board of directors has directed Sammon to search for a new CFO. In the meantime, Matthew Trinkaus will continue to serve as PAR’s acting treasurer and principal accounting officer, the company said.
PAR hired Bartusek on July 20, 2015. He filled the position that Ronald Casciano, the firm’s former president and CEO, vacated when the PAR board of directors appointed Casciano to the top position following the resignation of Paul Domorski in March 2013.
Based in New Hartford, PAR sells hardware and software to the hospitality industry. Its government business provides computer-based system design, engineering, and technical services to the U.S. Department of Defense and various federal agencies.
Contact Reinhardt at ereinhardt@cnybj.com
