In Business This Week
PHAR-MOR CALLS IN THE FEDS
An alleged $350 million fraud and embezzlement scheme is rocking Phar-Mor, a fast-growing $3 billion discount-drug chain, not to mention the sporting world. The company says it has dismissed founder and President Michael Monus and Chief Financial Officer Patrick Finn and asked federal authorities to investigate the matter. Phar-Mor, a privately held Youngstown (Ohio) company, says it will take a $350 million charge to cover overstated earnings. Monus was not available for comment, and Finn's lawyer wouldn't discuss the situation.
The company further alleges that Monus diverted funds to the now-defunct World Basketball League, which he founded. The scandal also touches Major League Baseball's Colorado Rockies expansion franchise. Monus and his father were limited partners in the Denver-based Rockies, though they resigned from the club on July 29. The Rockies say their operations will not be affected. MLB did not return calls seeking comment.EDITED BY HARRIS COLLINGWOOD