Todd Murray, a well-respected and long-time leader in the hearing industry, has decided to resign from his position as president of Beltone and GN North America senior vice president. GN says it respects his decision and wishes him the best in his future endeavors.
GN announced on August 13 in its Q2 Interim Report the discovery that Beltone’s VP of Finance, who was not identified by name, had committed accounting fraud. As a result, the company took a one-time loss of US$22.3 million (DKK 150 million) in the second quarter related to fraud conducted from 2012-2014. The VP of finance has been dismissed and the matter is under investigation, GN said.
Murray has been a respected leader in the hearing industry and a two-term chairman of the Hearing Industries Association (HIA). He has been president of Beltone since July 2004, taking the helm during a turbulent period in the company’s history. In 2009, he was appointed president of GN Hearing Care Corp North America.
In response to an email from The Hearing Review, Rich Swanson, VP finance GN North America and Beltone’s interim president, wrote: “The accounting issues discovered took place over the course of several years. It did not involve any actual cash, only paper transactions. The company will not let the actions of a single individual disrupt Beltone’s employees, brand or customer relationships, which, with a rich 75-year history, are stronger than ever.”
GN Vice President of Group Communication Steen Frenz Laursen also wrote in an email to The Hearing Review: “In Q2 2015, it was discovered that the VP of Finance in the Beltone distribution network had committed accounting fraud. As a result, a one-off loss of DKK 150 million related to fraud conducted from 2012- 2014 has been booked by GN ReSound in Q2 2015. The employment of Beltone’s VP of Finance has been terminated for cause. The circumstances of the accounting fraud is still under investigation, and GN is evaluating its potential options with respect to the former VP of Finance.”
Laursen also pointed to the quote by GN ReSound CEO Anders Hedegaard in GN’s Q2 Interim Report which underscores the strong growth that the company is experiencing, driven by the successful launch of ReSound LiNX2, as well as gains in the Department of Veterans Affairs, Germany, and Japan.