At a shareholder meeting of the Multiple Listing Service of Northern Illinois, accounting firm PriceWaterHouseCoopers presented the results from a controversial forensic audit to a gaggle of association members, executives and their lawyers. The group officially received the report and agreed to act on findings at a meeting next Monday.

Prior to the meeting getting underway, MLSNI CEO Jay Huffman and his general counsel were asked to leave the meeting.

At a shareholder meeting of the Multiple Listing Service of Northern Illinois, accounting firm PriceWaterHouseCoopers presented the results from a controversial forensic audit to a gaggle of association members, executives and their lawyers. The group officially received the report and agreed to act on findings at a meeting next Monday.

Prior to the meeting getting underway, MLSNI CEO Jay Huffman and his general counsel were asked to leave the meeting. He was not given a copy of the report until first signing a non-disclosure agreement.

In April, one of the largest MLSs in the country voted to conduct a forensic audit of the operation and Huffman. The MLS has about 37,000 members in more than 6,000 realty offices in the Chicago area.

A forensic audit is different from most audits in that it involves auditing, accounting and investigating. Forensic accountants engage in “factual economic transactional analysis that requires a level of detail and precision sustainable in an adversarial legal proceeding,” according to the Journal of Forensic Accounting.

Steve Bochenek, attorney for the Illinois Association of Realtors, oversaw the process.

Terry Penza, president of the Northshore-Barrington Association of Realtors, initiated the motion for the audit at a special shareholders meeting on April 6. At that time, the release to shareholders of the MLS’ financial statements had been delayed for several months.

“On April 6, when the shareholder meeting took place, no one had seen a financial (statement) since June 30, 2003. That was the issue,” Penza said at the time.

Two days after the shareholder meeting, Huffman produced the delayed financial statements. He said the MLS’ annual audit is what caused a delay in the production of financial statements.

***

What’s your opinion? Send your Letter to the Editor to newsroom@inman.com.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×