Why GMXR CFO Ken Kenworthy Sr. should either resign or be terminated
CFO Kenworthy consistently violates the company 'Code of Business Conduct and Ethics.'
GMXR has a 'Code of Business Conduct and Ethics' published on their company website. There are 14 points discussed in this 'Code.' What rules has he broken?
1. COMPLIANCE WITH LAWS
"It is the policy of the Company to comply with all laws wherever it does business."
GMXR CEO Fails to Certify 2005 10K as Required by SEC. Company Forced to Amend 10K. The CFO of GMXR (Ken Kenworthy Sr.) signed section 1350 on the 2005 10K reserved for the CEO; Effectively this made the document non compliant with SEC rules and regulations (laws) as the the SEC requires the CEO to sign the CEO certification (Not the CFO.)
See Photo of CFO signature on CEO certification section
2. RECORD KEEPING
"All Company accounting records and reports produced from those records shall be kept and presented accurately and in accordance with generally accepted accounting practices..."
GMXR CFO consistently puts out inaccurate information. Look at the latest press releases. There is absolutely no excuse for the amount of errors and magnitude of the errors that occurred with two separate press releases within the last week. The first error ridden press release was released on January 25, 2007. Not only was this press release full of errors but the headline in the press release was not grammatically correct and was very poorly worded. Compare the actual headline with another persons idea of how the headline should have been written.
Two days later on January 27, 2007 another press release was issued correcting the multiple errors in the initial press release from two days prior.
Here is one person's take on the errors confessed on January 27, 2007.
Four days later on January 31, 2007 GMXR issued the third public statement in 7 days either containing errors or confessing to them.
Error from January 31, 2007:
* "On January 31, 2007, the management of GMX Resources Inc. (the "Company") determined that its pro forma footnote disclosures for stock based compensation expense...were overstated and therefore not correct."
* "financial statements relating to the 2005 Interim Periods should no longer be relied upon."
3. PUBLIC DISCLOSURES
"We must assure that all disclosures... submitted to, the Securities and Exchange Commission...by the Company are...accurate (and) timely."
GMXR has consistently had problems submitting required SEC filings in a timely fashion:
* GMX RESOURCES INC NT 10-K 3/30/2004; 12/31/2003
PART III - NARRATIVE: The Company was unable to timely complete its audited financial statements for its Form 10-K for the period ended December 31, 2003, because of a lack of personnel and a delay in the receipt of the oil and gas reserve report by the Company.
* GMX RESOURCES INC NT 10-K 4/1/2003; 12/31/2002
PART III - NARRATIVE: The registrant was unable to timely complete its Form 10-KSB for the period ended December 31, 2002 because of reductions in accounting personnel due to working capital limitations.
* GMX RESOURCES INC NT 10-K 4/2/2002; 12/31/2001
PART III - NARRATIVE: The registrant was unable to timely complete its Form 10-KSB for the period ended December 31, 2001 because of a delay in receiving its reserve report from third parties necessary to complete the audited financial statements and other disclosures.
* GMX RESOURCES INC NT 10-Q 5/14/2003; 3/31/2003
PART III - NARRATIVE: The registrant was unable to timely complete its Form 10-Q for the period ended March 31, 2003 because of reductions in accounting personnel due to working capital limitations.
* GMX RESOURCES INC NT 10-Q 5/15/2002; 3/31/2002
PART III - NARRATIVE: The Company was unable to prepare financial statements in sufficient time to permit required review by its auditors.
* GMX RESOURCES INC NT 10-Q 11/15/2001; 9/30/2001
PART III - NARRATIVE: The registrant was unable to timely complete its Form 10-QSB for the period ended September 30, 2001 because of its inability to obtain some of the required financial information from third parties.
4. CONFLICT OF INTEREST:
"Conflicts of interest are prohibited as a matter of Company policy. A 'conflict of interest' exists when a person’s private interest interferes in any material way with the interests of the Company."
GMXR CFO Ken Kenworthy Sr. is the father of GMXR CEO Ken Kenworthy Jr. The frequency, magnitude and kinds of errors committed by CFO Ken Kenworthy Sr. are completely unacceptable for a CFO. Due to the family relationship of these two individuals, the son (the CEO) is not able to discipline the CFO (the father) with an unpaid suspension or termination. Clearly this is a conflict of interest and is in violation of the GMXR published 'Code.'
IN conclusion, CFO Ken Kenworthy Sr. should be terminated or at the very least disciplined (unpaid suspension?) The corporate governance clearly states:
"ACCOUNTABILITY:
Violations of the Code are cause for disciplinary action, which may result in disciplinary action up to and including discharge."
Ken Kenworthy Sr: You are not worthy.
CFO Kenworthy consistently violates the company 'Code of Business Conduct and Ethics.'
GMXR has a 'Code of Business Conduct and Ethics' published on their company website. There are 14 points discussed in this 'Code.' What rules has he broken?
1. COMPLIANCE WITH LAWS
"It is the policy of the Company to comply with all laws wherever it does business."
GMXR CEO Fails to Certify 2005 10K as Required by SEC. Company Forced to Amend 10K. The CFO of GMXR (Ken Kenworthy Sr.) signed section 1350 on the 2005 10K reserved for the CEO; Effectively this made the document non compliant with SEC rules and regulations (laws) as the the SEC requires the CEO to sign the CEO certification (Not the CFO.)
See Photo of CFO signature on CEO certification section
2. RECORD KEEPING
"All Company accounting records and reports produced from those records shall be kept and presented accurately and in accordance with generally accepted accounting practices..."
GMXR CFO consistently puts out inaccurate information. Look at the latest press releases. There is absolutely no excuse for the amount of errors and magnitude of the errors that occurred with two separate press releases within the last week. The first error ridden press release was released on January 25, 2007. Not only was this press release full of errors but the headline in the press release was not grammatically correct and was very poorly worded. Compare the actual headline with another persons idea of how the headline should have been written.
Two days later on January 27, 2007 another press release was issued correcting the multiple errors in the initial press release from two days prior.
Here is one person's take on the errors confessed on January 27, 2007.
Four days later on January 31, 2007 GMXR issued the third public statement in 7 days either containing errors or confessing to them.
Error from January 31, 2007:
* "On January 31, 2007, the management of GMX Resources Inc. (the "Company") determined that its pro forma footnote disclosures for stock based compensation expense...were overstated and therefore not correct."
* "financial statements relating to the 2005 Interim Periods should no longer be relied upon."
3. PUBLIC DISCLOSURES
"We must assure that all disclosures... submitted to, the Securities and Exchange Commission...by the Company are...accurate (and) timely."
GMXR has consistently had problems submitting required SEC filings in a timely fashion:
* GMX RESOURCES INC NT 10-K 3/30/2004; 12/31/2003
PART III - NARRATIVE: The Company was unable to timely complete its audited financial statements for its Form 10-K for the period ended December 31, 2003, because of a lack of personnel and a delay in the receipt of the oil and gas reserve report by the Company.
* GMX RESOURCES INC NT 10-K 4/1/2003; 12/31/2002
PART III - NARRATIVE: The registrant was unable to timely complete its Form 10-KSB for the period ended December 31, 2002 because of reductions in accounting personnel due to working capital limitations.
* GMX RESOURCES INC NT 10-K 4/2/2002; 12/31/2001
PART III - NARRATIVE: The registrant was unable to timely complete its Form 10-KSB for the period ended December 31, 2001 because of a delay in receiving its reserve report from third parties necessary to complete the audited financial statements and other disclosures.
* GMX RESOURCES INC NT 10-Q 5/14/2003; 3/31/2003
PART III - NARRATIVE: The registrant was unable to timely complete its Form 10-Q for the period ended March 31, 2003 because of reductions in accounting personnel due to working capital limitations.
* GMX RESOURCES INC NT 10-Q 5/15/2002; 3/31/2002
PART III - NARRATIVE: The Company was unable to prepare financial statements in sufficient time to permit required review by its auditors.
* GMX RESOURCES INC NT 10-Q 11/15/2001; 9/30/2001
PART III - NARRATIVE: The registrant was unable to timely complete its Form 10-QSB for the period ended September 30, 2001 because of its inability to obtain some of the required financial information from third parties.
4. CONFLICT OF INTEREST:
"Conflicts of interest are prohibited as a matter of Company policy. A 'conflict of interest' exists when a person’s private interest interferes in any material way with the interests of the Company."
GMXR CFO Ken Kenworthy Sr. is the father of GMXR CEO Ken Kenworthy Jr. The frequency, magnitude and kinds of errors committed by CFO Ken Kenworthy Sr. are completely unacceptable for a CFO. Due to the family relationship of these two individuals, the son (the CEO) is not able to discipline the CFO (the father) with an unpaid suspension or termination. Clearly this is a conflict of interest and is in violation of the GMXR published 'Code.'
IN conclusion, CFO Ken Kenworthy Sr. should be terminated or at the very least disciplined (unpaid suspension?) The corporate governance clearly states:
"ACCOUNTABILITY:
Violations of the Code are cause for disciplinary action, which may result in disciplinary action up to and including discharge."
Ken Kenworthy Sr: You are not worthy.
posted by -Aztec- at 7:42 AM
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