XML 22 R6.htm IDEA: XBRL DOCUMENT v2.3.0.15
UNAUTHORIZED TRANSACTIONS
3 Months Ended
Sep. 30, 2011
UNAUTHORIZED TRANSACTIONS 
UNAUTHORIZED TRANSACTIONS

2.             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 12).  The insurance and other recoveries represent amounts received under the Company’s insurance and other settlements related to the unauthorized transactions.  For the three months ended September 30, 2011 and 2010, these costs and recoveries were as follows:

 

 

 

Three Months Ended
September 30

 

 

 

2011

 

2010

 

 

 

 

 

 

 

Legal fees

 

$

448,906

 

$

612,544

 

Professional fees

 

—

 

16,877

 

Total costs

 

448,906

 

629,421

 

 

 

 

 

 

 

Insurance and other recoveries

 

(499,320

)

(363,137

)

 

 

 

 

 

 

Unauthorized transaction related costs and (recoveries), net

 

$

(50,414

)

$

266,284

 

 

See Note 12 below 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.