BRIEF-NCI announces internal investigation

Jan 23 (Reuters) - NCI Inc :

* NCI announces internal investigation

* Based upon preliminary findings, it has discovered that its controller, acting alone, embezzled money from company

* Employment of controller has been terminated

* NCI Inc - “while investigation is ongoing, company believes that its former controller embezzled approximately $18 million over last six years”

* NCI Inc- of estimated $18 million of embezzled funds, believes that about $5 million was taken during 2016,remaining $13 million was taken over prior five years

* NCI Inc - at this time, company is not aware of any other possible misstatements in financial statements

* Co’s preliminary findings indicate that the $18 million embezzled funds were reflected as expenses in company’s financial statements

* NCI-Believes after direct recovery from former controller & after giving effect to insurance coverage,will be able to recover large part of embezzled funds

* NCI - concluded unaudited interim financial statements for 9-month period ending Sept. 30, 2016, contain material errors related to theft in that period

* NCI Inc - as part of completion of financial reporting process for FY 2016, co will provide amended financial results for that nine-month period

* NCI- “believes material weaknesses existed in internal controls during relevant periods during which embezzlement occurred”

* NCI- employment of controller has been terminated, co has commenced an internal investigation with help of outside counsel and forensic accountants Source text for Eikon: Further company coverage: