UNAUTHORIZED TRANSACTIONS

In December 2009, the Company learned of significant unauthorized transactions, which totaled approximately $31,500,000 from fiscal 2005 through December 2009.

The unauthorized transaction related costs and recoveries, net line in the Condensed Consolidated Statements of Income is comprised of the legal and professional fees for legal defense costs as well as legal fees related to certain claims initiated against third parties (see Note 13). The insurance and other recoveries represent amounts received under the Company’s insurance and other settlements related to the unauthorized transactions. For the three and nine months ended March 31, 2012 and 2011, these costs and recoveries were as follows:



	Three Months Ended						Nine Months Ended
	March 31						March 31
	2012			2011			2012			2011
Legal fees	$	136,972		$	828,352		$	814,145		$	2,238,498
Insurance and other recoveries	(754,075		)	(1,204,896		)	(1,951,181		)	(2,143,858		)
Unauthorized transaction related costs and (recoveries), net	$	(617,103	)	$	(376,544	)	$	(1,137,036	)	$	94,640

See Note 13 for additional information relating to the Company’s expectation of receiving additional proceeds from the sale of items that law enforcement seized relating to the unauthorized transactions.