Several KKD officers were formerly employed by PriceWaterhouseCoopers LLP, the current auditor. All of the following excerpts are from the 12/16/1999 S-1:
J. PAUL BREITBACH has been employed by Krispy Keme since November 1992 as Executive Vice President, Finance, Administration and Support Operations. From 1973 to November 1992, Mr. Breitbach was a partner at the accounting firm of Price Waterhouse, and from 1983 to 1992 was managing partner of that firm's Winston-Salem, North Carolina office. From 1987 to 1992 he was also group managing partner for all Price Waterhouse offices in North Carolina and South Carolina. Mr. Breitbach is a certified public accountant.
RANDY S. CASSTEVENS has been employed by Krispy Kreme since 1993. Mr. Casstevens has served as Senior Vice President, Finance, since April 1998 and as Secretary since November 1995. Prior to joining Krispy Kreme, Mr. Casstevens was employed by Price Waterhouse from 1987 to 1993. Mr. Casstevens is a certified public accountant.
MICHELLE P. PARMAN has been employed by Krispy Kreme since 1993. Ms. Parman has served as Senior Vice President, Corporate Development since April 1998. Previously, she served as Vice President, Strategic Planning. Before joining Krispy Kreme, Ms. Parman was employed by Price Waterhouse from 1984 to 1993. Ms. Parman is a certified public accountant.
Doesn't Price Waterhouse have it's own internal police force or Inspector General or something?? You would think that after Enron killed that other big accounting firm that these people would be more careful. Funny how the relatively small-time greed of a few local partners can wipe out the capital of firms' thousands of partners all over the country. Life's not fair. If it were, they would hang these people from trees and let the crows pick at them, just like in olden days.
just curious... do you happen to remember the moment you learned that Scott's wife used to be a partner at KKD's outside auditing firm? Did you get that bit of a sick feeling in your stomach, kind of alarm thing going off?? Did you ever watch that movie Pinocchio? nice kid but hangs out with a bad element. winds up on this island with his ears and tail growing, some kind of donkey thing. good movie rental. then there's that other one "the Insider" with Russell Crowe. that's a good one too. I mentioned it o you once before. Listen, check out Bethany McLean's photo on Google. She is GREAT looking. If she should call you up, ask her out on a date (like a week in Acapulco, ha ha ). Seriously, put a bottle of Veuve Clicqout in the fridge to chill and invite her over to the pad. Maybe you could watch those two movie rentals together.
If Herb doesn't want to pursue this (and do at least a bit of leg work) why don't we contact the luscious Bethany McLean at Fortune. She's the one that got the Pulitzer for the Enron Story. (not the nitwit donut eating Andy Serwer who wrote the Fortune puff piece).
Out of sheer boredom, let's have a quiz.
Who can tell me a little more about the 3 former Price Waterhouse employees who came to kkd in 1992/3:
J. Paul Breitbach
Randy S. Casstevens
Michelle P. Parman
Specifically, what were their roles at kkd and what are they doing now?
Breitbach: Former VP. Cashed out, now retired, serving on community boards.
Parman: Former VP of corporate development (helped with IPO and secondary). Cashed out, now retired, volunteer on boards.
Casstevens: Former CFO. Cashed out, now arranging folksy western guitar tunes for muslim prayers.
Do i pass?
Krispy Kreme Doughnuts (nyse: KKD - news - people ) named Michael Phalen chief financial officer, effective Jan. 5. Phalen was executive director of corporate finance at investment bank CIBC World Markets and succeeds Randy Casstevens, who was reassigned to the job of chief governance officer last spring when the company restructured its board of directors. Before joining CIBC, Phalen was a finance executive at Deutsche Banc Alex Brown, where he was part of the team that executed Krispy Kreme's initial public offering and follow-on offering.
Krispy Kreme Doughnuts (KKD) named Michael Phalen chief financial officer, replacing Randy Casstevens, who left the position to become the company's chief governance officer. Casstevens is now resigning from that position. He will be replaced by Frank Murphy, Krispy Kreme's general counsel.
I give up DI, where has he run off to now?
Nice job of posting incidentally; again, thanks for letting me use some of your posts as an example of good homework.
well if you were in charge of finance would you take your business to your friends or down the street? To your friends!
No, if I were in charge of finance I most definitely would NOT take the business to my friends. In fact, they would be exkluded because they ARE my friends. This, IMO, is a no-brainer.
Even a whiff of impropriety, whether justified or not, kan ruin a business. If I have nothing to hide, why not just take the business to an auditor where investors kan be more konfident of an unbiased, independent audit?
I guess this sort of behavior is kommonplace in the auditing profession (we're all probably going to learn alot more about that profession (not far removed from the oldest) during the Enron investigations). I assume (and am surprised) that their don't seem to be ethical guidelines for relationships such as this (maybe there are guidelines, but, if so, they're obviously being ignored).
Any CPAs/auditors out there?
C'mon, man. They all worked for P-W eight (8) years ago. Big deal! People grow professionally and move on. I'd be more concerned that present auditors are in bed with KKD, a'la Enron.
You and I agree that KKD stock is way overpriced, but nobody is "tricking" longs into buying here. PE and PEG are well known to any investor with half a brain, which I hope would include even a KKD long. It's a free market, and let the buyer beware, sure; but there's no impropriety in your revelation that several KKD employees worked for P-W eight years ago. Gim'me a break!
It's a free market, and let the buyer beware, sure; but there's no impropriety in your revelation that several KKD employees worked for P-W eight years ago. Gim'me a break!
I never said there's an impropriety. That's the worst case (which I have no evidence of).
In the best case, it looks bad. Breitbach was the managing partner at the Winston-Salem office for 10 years. Do you think he has any clout at the P-W office?
The former P-W's at KKD know the ins and outs of that firm (in addition to the industry); they know what is likely to pass muster and what will not. In that respect, using P-W as the auditor (vs. someone else who they don't know as well), probably lets them breathe a little easier when they try things like
1) not depreciating property and equipment until the next half year after it's put into service
2) keeping the Effingham facility off-balance sheet
Why not just hire someone else? It's not that hard...
You worked in the Navy, right? Let's say your captain of 10 years (he trained you) is promoted to admiral. When he leaves he takes several people with him (your friends). After several more years go by (ok, 8), you are asked by the Navy (as part of a program to evaluate its entire combat group) to certify the combat readiness level of his fleet. Even if you could honestly say that your prior affiliation with the admiral and his subordinated would in no way affect your judgement, I would argue that the appropriate course of action would be assignment to a different fleet.
Wachovia and Pricewaterhouse are no doubt motivated by big fees. The $124k fee to PW for Scott's personal return must have included a very juicy bonus for some partner. As for Randy Casstevens' impending departure, it does seem logical that there's resentment on his part that his pile of options was so relatively thin. Perhaps he will be taking up missionary work in the future. You know, to repent.
Divursefi's got the story (and you are more than welcome to crib from his notes) on the incestuous relationship between the Winston Salem office of Price Waterhouse Coopers and KKD, the revolving door, the BIG fees, the big perks to Scott Livengood and to Mrs. Livengood (a former employee of that same PWC office). This is just TOO juicy. And no one has ever reported on it. (whoever is talking to Herb, please clue him in on this.)
Again, nothing of substance. All you've done is lost money. What are you down now... 80%?
Easiest way to measure competence... I've been short since 42 and you've been pumping since 45. Who's had more success?
Are you long any other stocks? They'd be a sure short.
I would like to correct you in a statement that you made, regarding the ability to speaking with one voice. Well, my Panic has one ID; even though the name is as odd as my Panic, I just want to let you know that even with his only one ID, he is skitzo and wouldn't need any other ID's to be skitzo. Anyhoo, I thought you should know this. Signed, Mrs. Panic.
lol! Well, csteru, you certainly had him pegged right!
now he just has to remember not to use that mouth in his next foreprofit post
ask him what the "lying" part was. I'm curious