Asche Transportation Services, Shannon, IL, has fired two of its top executives for allegedly embezzling $1 million.
The company had previously announced that Larry L. Asche, chairman and CEO, and Diane L. Asche, vice president and secretary, were departing the company, but would not comment on the reason. In yesterday's announcement, Asche said that an investigation by outside auditors revealed that Mr. and Mrs. Asche had allegedly misappropriated approximately $1 million over a number of years through a combination of improper payments to parties related to them for leased trailer maintenance expenses and other unauthorized payments and reimbursements.
Asche is also suing the Asches and related parties to recover the missing money.
John J. Quirk, principal of Churchill Capital, Inc., has been appointed chairman of the board. Gary I. Goldberg has been appointed chief executive officer and president of the company. Goldberg has been a shareholder and director of the company for several years and serves as president of Specialty Transportation Services, Asche's waste transportation subsidiary.
An executive committee of outside directors has been formed to assist Goldberg in managing the business and affairs of the company. Changes have also been made to the audit, compensation and stock option committees of the company.
In January, Asche Transportation Services dismissed the controller at subsidiary Asche Transfer after the controller apparently misstated financial reports and allegedly stole more than $60,000.
Asche is also implementing cost-cutting measures, including the closure of a maintenance facility in Atlanta and the transfer of all maintenance to a new $2 million company-owned facility in Rockford, IL, along with the reduction of non-essential personnel.