Thats rough if your chief compliance officer ends up being the guy that pulls the unethical stuff like this. That’s great that they fired him if in fact he was acting out of line. Just a suggestion though. Maybe hire a non-lawyer type for the position or do a more thorough vetting of the new legal eagle? Trust but verify, all the way. –Matt
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DynCorp Fires Executive Counsel
November 28, 2009
By August Cole
DynCorp International Inc. said it has terminated one of its top lawyers, a move that comes on the heels of the government contractor’s disclosure that some of its subcontractors may have broken U.S. law in trying to speed up getting licenses and visas overseas. The lawyer, Curtis Schehr, was a senior vice president, executive counsel and the firm’s chief compliance officer, a position created earlier this year. He joined DynCorp in 2006 as general counsel.
The company disclosed the “termination without cause” in a filing Wednesday with the Securities and Exchange Commission. The move was effective Monday, according to the filing.
It couldn’t be determined whether Mr. Schehr’s departure is
connected with the licensing and visas matter. A DynCorp
spokesman declined to comment, saying it was a personnel matter.
Mr. Schehr didn’t immediately return a call seeking comment.
DynCorp’s business in overseas hot spots is growing. In
Afghanistan, the Falls Church, Va., company recently won a major
Defense Department contract worth billions of dollars to build
bases and supply U.S. forces.
Yet the company has grappled with a series of setbacks that have
put it on the defensive over its oversight and management of
government contracts.
The most recent issue was revealed in a Nov. 9 filing with the
SEC. DynCorp said subcontractors may have spent as much as
$300,000 to “expedite the issuance of a limited number of visas
and licenses from foreign government agencies,” which may have
violated the Foreign Corrupt Practices Act.
DynCorp hasn’t said which U.S. government contract was involved.
The company said it notified the SEC and the Justice Department
after discovering the problem.
There have been other issues at DynCorp recently. Following
Iraq’s decision to oust Blackwater Worldwide from Iraq, DynCorp
was supposed to move quickly provide helicopters for U.S.
diplomats in Baghdad. But that has been delayed well into next
year as DynCorp’s aircraft weren’t suited to the job.
In March, a DynCorp contractor in Afghanistan was found dead
after an apparent drug overdose. In a statement for a September
hearing of the Commission on Wartime Contracting, DynCorp’s chief
executive acknowledged the incident and said the company had
“reinforced” its standards and implemented new training.
In May, the company named Mr. Schehr to the chief compliance
officer position, which had “management oversight for the
company’s ethics and business conduct program, related internal
investigations, internal audit, and trade compliance, which
includes all export and import activities.”
As chief compliance officer, Mr. Schehr reported directly to
DynCorp Chief Executive Officer William Ballhaus and the board of
directors’ audit committee.
Write to August Cole at august.cole@dowjones.com
Story here.