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In: Business and Management

Submitted By montey619
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Memorandum

To: Accounting Manager

From: Matthew Montag (CPA)

Date: 6/6/2011

Re: Resignation of CFO and SEC Investigation

As you are aware, Martin McCord has resigned unexpectedly from the Newman Equity Group. The U.S. Securities and Exchange Commission (SEC), requested documentation to initiate an investigation of company accounting practices.

CFO Resignation and SEC Investigation

Due to this investigation, Newman Equity Group must provide documentation requested by the SEC to uphold our legal responsibilities. As a publicly traded company, Newman Equity Group must provide public notice of the sudden vacancy to the position of Chief Financial Officer. I have included in this communication a copy of the Press Release scheduled to be sent tomorrow morning.

Newman Equity Group must assess the potential impact to all stakeholders, and provide information to these parties. Ethical considerations are necessary when requests for information are made by the SEC during investigations. It is vital to provide all stakeholders with relevant information while maintaining their confidence while minimizing possible negative repercussions to company image.

There is significant value in providing communications about recent events to reduce negative affects caused by other media outlets providing information. The press release is targeted at alleviating public concern over the financial stability of Newman Equity Group.

The press release is expected to reduce negative affects to public opinion in the financial stability and credibility of the company. It is our goal to use the press release in a manner that will maintain a positive company image by presenting all relevant information about the current events such as the CFO resignation and SEC investigation. The press release will…...

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