Former SDN Accountant Accused Of Embezzlement

SIOUX FALLS, SD - Officials with SDN Communications in Sioux Falls say they are the victims of embezzlement, and the person who is at the center of the case is their former chief accountant.�

SDN Communications, the largest fiber-optic network in the region, says former accountant Brad Whitsell has been charged in federal court for employee misconduct that involved a 'significant' amount of money.

The CEO of SDN says officials started noticing 'financial irregularities' connected to Whitsell last year, and he was put on administrative leave so they could conduct a forensic audit and internal investigation. But, Whitsell resigned before the investigation even began.

In a YouTube statement to customers Tuesday�SDN Board President Bryan Roth and CEO Mark Shlanta addressed an embezzlement case involving the former accountant.

"Even though the dollar amount is significant, it allegedly happened over a number of years, so it has not significantly impacted our annual operations," Shlanta said.�

Whitsell made a court appearance Tuesday on federal charges SDN classifies as 'employee financial misconduct.'

"We are limited in what we can say since this is a pending court case, but I want to emphasize this alleged crime is an isolated incident by a single employee. Frankly, this is embarrassing and painful for all of us at SDN," Shlanta said in the YouTube statement.

And the company says it has already made changes to prevent similar incidents from happening again.

"The good news is SDN is a stronger, better company because we've taken measures to prevent any future issues," SDN Communications Board President Bryan Roth said.

They say they've increased checks and balances in their accounting and also set up a fraud hotline for employees for any future anonymous tips.�

"Our employees said honesty is the character trait they most value. All of us at SDN must live up to that, no exceptions. We want to live up to that by being as transparent as possible with you through this pending case," Shlanta said.�

KELOLAND News�left a message for Brad Whitsell at his Sioux Falls home Tuesday night asking for a comment on the federal charges he faces, but he did not return our call.

We hope to have more information on the exact charges he faces by Wednesday.

� 2011 KELOLAND TV. All Rights Reserved.

Source: http://www.keloland.com/NewsDetail6162.cfm?Id=0,116750

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