May 4, 2018
As reported before, HJH Consulting Group Inc, also known as The Salt Group, filed for bankruptcy and is allegedly being investigated by the FBI. Then the company accused former president of 19 years, Stephen Canty, of breaching his fiduciary duty.
The latest news coming from the consulting company is that the president has now been accused of overstating the amount of money clients owed the company by $25 million.
During a creditors meeting on Monday, bankruptcy lawyer James Wilkins said that by manipulating the books, Canty was able to tap more of the company’s $27 million line of credit with Texas Capital Bank. He stated, “We’re going to find out exactly what he embezzled, pilfered,” as reported by San Antonio Express-News.
It has been reported that HJH has had three audits a year over a five year period, 15 audits that were signed off.
Texas Capital Bank, a creditor of HJH, is trying to determine the “true receivables” that it has liens on. The bank reportedly has a forensic accountant reviewing the books.
The reason for false entries by Canty is unknown and the former employees say they have yet to be paid for their final weeks of work. The employees were instructed to file their claims with the bankruptcy court.
HJH Consulting Group Inc., hasn’t taken any legal action against Canty, as of yet, and Canty hasn’t made any public comments.