A quiet shake-up is happening at CHS Inc. after the firm uncovered an employee's financial misstatements had led CHS to massively overstate its profits in recent years.
The StarTribune reports a trader at the Inver Grove Heights, MN-based agricultural cooperative inflated the value of rail-freight contracts, lied to an auditor about it and was fired, the firm announced last month.
Because of the misvalued rail contracts, CHS overstated its pretax profit by as much as $190 million over the past four fiscal years, or 12% of its $1.6 billion pretax profit in that time.
Since that announcement, Dan Mack, the vice president of rail transportation and terminal operations, has resigned, he confirmed to the Star Tribune.
CHS hopes to file corrected financial statements with the SEC by Nov. 29, but does not guarantee it will be able to by then.
