[2] S&P Withdraws Creditrust Corp. Servicer Ranking.NEW YORK--(BUSINESS WIRE)--Dec. 15, 1999-- The Servicer Evaluation ranking of Above Average on Creditrust Corp. has been withdrawn and the company has been removed from Standard & Poor's Approved Servicer List. The ranking withdrawal was necessary in light of the recent filing by Creditrust Corp. of an 8-K with the Securities and Exchange Commission. The 8-K disclosed that: '...in October October: see month. 1999, (Creditrust) became aware that a management employee who subsequently resigned misdirected corporate funds of approximately US$500,000 by submitting an unauthorized check request and then seeking to redirect re·di·rect tr.v. re·di·rect·ed, re·di·rect·ing, re·di·rects To change the direction or course of. n. A redirect examination. re those funds through our collection payment stream. Members of our senior management learned that a check in a similar amount was unsuccessfully presented by the former employee into our collection payment stream. The chief executive officer sought to recover these funds or have them applied as intended by us. The funds remained under the former employee's control for approximately seven weeks. During this period, these circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or were not reported to the audit committee of our board of directors or our independent auditors Independent Auditor An external auditor with a certified public accounting designation that qualifies him or her to provide an auditor's report. Notes: These auditors aren't affiliated with the company being audited. . We have now recovered the full amount of the misappropriated mis·ap·pro·pri·ate tr.v. mis·ap·pro·pri·at·ed, mis·ap·pro·pri·at·ing, mis·ap·pro·pri·ates 1. a. To appropriate wrongly: misappropriating the theories of social science. funds. No improper
Since this action, Creditrust has stated that its external counsel has performed an investigation into the matter and subsequently implemented enhancements to its internal controls and procedures. The effectiveness of these newly implemented controls can only be demonstrated with the passage of time. Therefore, as the effectiveness of these new controls cannot be measured, the ranking is withdrawn at this time, Standard & Poor's said. RANKING WITHDRAWN To From Creditrust Corp. NR Above Average ---CreditWire Copyright 1999, Standard & Poor's Ratings Services Ratings Service A company, such as Moody's or Standard & Poor's, that rates various debt and preferred stock issues for safety of payment of principal, interest, or dividends. |
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