SPENCER, IA – January 11, 2010 – (Motor Sports Newswire) – Cycle Country Accessories Corp (AMEX: ATC), a supplier of accessories for utility all-terrain vehicles, revealed on Friday that its chairman of the board of directors , L. G. (Bob) Hancher, Jr., has admitted to a misappropriation of funds and resigned from the board.
The misappropriation was uncovered in connection with the audit of the company’s financial statements for the period ending 30 September 2009. Hancher had served on the board since 2001.
In October 2008 Hancher recommended a repurchase of some Cycle Country shares and indicated that he would handle such repurchases through an affiliated company and a company with whom he had worked in the past. These entities were paid a total of USD570,000. However, after irregularities were discovered by the company Hancher acknowledged that he had received the funds but did not use USD400,000 of the funds to purchase company stock.
As a result of this discovery Cycle Country will not be able to file its annual Form 10-K report on time and will also need to restate its financial statements for the first three fiscal quarters of 2009.
Investigations of the facts are continuing and Cycle Country said that it intends to recover the amounts due to it as a result of these events.
For full details on Cycle Country Accessories Corp (ATC).