Bally Fires 2 Executives Over Accounting Issues
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After a five-month internal investigation, Bally Total Fitness Holding Corp. has fired two mid-level executives and accused its former chief executive and chief financial officer of faulty accounting practices.
The gym operator said former CEO Lee Hillman and former finance chief John Dwyer were responsible for “multiple accounting errors and for creating a culture of aggressive accounting.” The company said it had ceased severance payments to both men.
Bally also fired Controller Ted Noncek and Treasurer Geoff Scheitlin for improper conduct.
Hillman said Bally had “no basis” for the allegations, which he termed “scurrilous.”
The three other men could not be reached for comment.
The Securities and Exchange Commission opened an investigation into the Chicago-based company in April over the recording of prepaid dues. Bally in November said it would restate financial results from 2000 through the first quarter of 2004 as a result of errors it made in booking revenue.
Bally fell 17 cents to $4.13 on the New York Stock Exchange.
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