...an internal audit revealed ``various irregularities'' in payments of cash and stock to possible affiliates of the officer. ....
U.S. Wireless Replaces CEO, Cites Probe
SAN RAMON, Calif. (Reuters) - U.S. Wireless Corp. (NasdaqNM:USWC - news), a provider of location-related information for mobile services, has replaced Oliver Hilsenrath as its chairman and chief executive, after an internal audit revealed ``various irregularities'' in payments of cash and stock to possible affiliates of the officer.
The company said on Saturday that it has not yet determined whether the payments have had a material effect on the company's past financial statements.
In response to his removal, Hilsenrath released a statement that ``compensation'' was ``paid to a number of bankers, agents and consultants'' who had supported U.S. Wireless through financing and ``creating important relationships'' for the company when other support was not available. He vowed to continue to be a ``great supporter of'' and ``an active member of the Board of Directors'' of the company.
U.S. Wireless also said it named Dennis Francis, a member of the board of directors, as chief executive officer and independent consultant Louis Golm as chairman.
An investigation by the audit committee of the board of directors uncovered ``insufficient documentation'' on cash payments and issuances of stock and stock options to possible affiliates of Hilsenrath and another former executive officer of the company, U.S. Wireless said in a statement.
No evidence was found linking any other employee, officer, or board member to any improper action, it said.
The audit committee conducted its investigation with the assistance of outside legal counsel and independent public accountant who ``had no prior affiliation with the company,'' the statement said.
In its latest annual report filed with U.S. regulators in June of last year, U.S. Wireless listed BDO Seidman LLP as its independent auditor.
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Press Release
SOURCE: Dr. Oliver Hilsenrath
Press Release From Dr. Oliver Hilsenrath
SAN RAMON, Calif., May 26 /PRNewswire/ -- Dr. Oliver Hilsenrath, Founder of U.S. Wireless Corporation (Nasdaq: USWC - news) made today the following statement in response to the Company's Executive Committee's decision to replace him as Chairman and Chief Executive Officer:
Notwithstanding the circumstances, I support the choice of Louis Golm as my successor as the Chairman of the U.S. Wireless Corporation Board of Directors and Dennis Francis as Chief Executive Officer.
I am in strong disagreement, however, with the criticism by the company's Audit Committee regarding compensation paid to a number of bankers, agents and consultants. These entities and individuals supported U.S. Wireless Corporation by facilitating financing and creating important relationships for the Company at a stage in its existence when other financing and sources of support were not available. I must note that the strengthening of the Company's internal audit function cited was initiated and implemented by me within the past year. All my decisions have been made with the best interest of the Company and its shareholders in mind.
As its founder and a major shareholder, I will continue to be a great supporter of U.S. Wireless Corporation, will continue to be an active member of the Board of Directors, and will continue to carry the message of the company within the United States and beyond.
Dr. Oliver Hilsenrath
Founder
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