ProQuest rocked by mis-statement probe

US financial regulator, the Securities and Exchange Commission (SEC), is investigating ProQuest Information & Learning following misleading financial statements by a senior executive.

The education publisher has carried out a root and branch investigation and “terminated” the executive responsible. ProQuest told IWR that it has now weathered a difficult storm.

According to an internal investigation conducted by law firm Skadden, Arps, Slate, Meagher & Flom , the former vp of finance at ProQuest has been found to “bear primary responsibility for accounting mis-statements” that have forced ProQuest to restate its earnings.

“Expenses appeared as capital items,” said Kevin Norris, ProQuest General Counsel, adding that the vp had made inappropriate journal entries to make the business look more profitable.

The investigation found that the vp had not made any money from the mis-statement, neither had he been under pressure from senior directors or received bonuses different to other senior executives.

ProQuest has been shocked by the investigation. “Any time you have an internal investigation it is very unsettling,” Norris said. “They walked into my office unannounced, took my laptop and copied it,” he said.

Norris confirmed ProQuest was being investigated by the SEC, the organisation that deals with corporate crime in the US, like the famed case of energy company Enron.

ProQuest will not reveal the identity of the former vp of finance.

“Customer response has been particularly gratifying. We have worked hard to update customers,” said David Prichard, ProQuest president.

Prichard has since signed a retention agreement to stay with the company.

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