Sarbanes-Oxley - Overview

Signed into law by President Bush in 2002, the Sarbanes-Oxley Act (often shortened to just Sarbanes-Oxley, or even SOX) represents the most dramatic change to federal securities law since the 1930´s. The Sarbanes-Oxley Act applies to all publicly traded companies, and is the federal government´s response to accounting scandals involving businesses like Enron. The purpose of the Sarbanes-Oxley Act is to ensure the board of directors of publicly held companies take responsibility for both receiving accurate information about the company´s finances and reporting accurately on those finances to the public. Sarbanes-Oxley also affects accounting firms and their auditing standards. In short there are specific onerous responsibilities that company officers have to comply with in their accounts. For example: The Chief Financial Officer and the Chief Executive Officer must provide a letter stating the financial data they have provided the auditors is accurate. This letter must be provided to the auditing firm before the audit can be approved, and must be included with the published audit.

Company executives and staff must not withhold financial information from the auditors, or attempt to influence the audit findings in any way. You may notice that Sarbanes-Oxley requirements have been signed off by Roger H Ballou and the CFO in CDI Corporation's annual reports. Failure to do so is not an option and non compliance carries some very serious penalties.

CDI Corporation and Sarbanes-Oxley outstanding questions

The write-off of significant debts becomes an issue under these rules. We know that Roger H Ballou and his team chose to allow Mr JW's debts to rise over years (1999 - 2003) to an astonishing amount of more than £170,000 Pounds (approximately $316,000 USD). We know from Steve Mills affidavit that this money was never collected. It follows that CDI must have written this debt off. The question that Roger H Ballou keeps avoiding to answer is:

What was the exact Dollar amount that he wrote off under the Sarbanes-Oxley Rules
When did he do this - i.e. which quarter(s).

Why does Roger H Ballou, keep sidestepping this issue? Has he got something more to hide? I believe the facts around what he should have done (in the context of Sarbanes-Oxley), are fairly straightforward. MRINetwork (owned by CDI Corporation) issued a Statutory Demand on 27th March 2003 to Mr JW and/or his Company for the sum of £170,477.60 Pounds (approximately $316,626 USD). Mr Steve Mills testified in deposition that this money was never collected. So I do not believe the amount that should have been written-off is in question. But Roger H Ballou continues to refuses to confirm his compliance to this amount or when (if indeed he did) write this amount off in accordance with Sarbanes-Oxley.

Why not? Until Roger H Ballou comes clean on the reality, you will have to draw your own conclusions.

As a shareholder, I have asked Roger H Ballou to clarify two simple questions about how much was actually written off under the Sarbanes-Oxley rules and when it was written off. He has failed to answer either question. You can read these two letters that state the known facts of what the non recovered debt was, and when the statutory demand was raised for that amount. Read the facts and form your own opinion as to whether Roger H Ballou has complied with Sarbanes-Oxley rules.

Sarbanes-Oxley Questions for CDI Corporation - first letter

Roger H Ballou, CEO of CDI Corporation has been asked to clarify:

  • when he write-off the debt of around $300,000 US Dollars from Mr JW
  • clarify the amount that he actually wrote-off

Read the first letter to Roger H Ballou on the outstanding Sarbanes-Oxley questions for CDI Corporation(1).

Sarbanes-Oxley Questions for CDI Corporation - second letter

Roger H Ballou is unwilling to clarify his legal obligations under Sarbanes-Oxley concerns for CDI Corporation. Why is Roger H Ballou so reluctant to clarifying his legal obligations for CDI Corporation. Does it perhaps suggest that these were not fulfilled correctly? Read the second letter to Roger H Ballou, CEO CDI Corporation, on the outstanding Sarbanes-Oxley questions for CDI Corporation(2) and form your own opinion as the whether Roger H Ballou did or did not fulfil his legal Sarbanes-Oxley obligations for CDI Corporation correctly or not.

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