Sounds like the Michigan-based IT services firm might have some 'splainin' to do.

Via Crains Detroit:

Covansys documents subpoenaed as part of SEC investigation

By Andrew Dietderich
April 21, 2005 3:24 PM


Covansys Corp. has received a subpoena for the production of documents, the company has disclosed in a U.S. Securities and Exchange Commission filing. The Farmington Hills-based company said it had received the subpoena April 14.

Covansys did not specify what documents were requested but said the request involves an SEC investigation of the company.

The subpoena seeks documents from Jan. 1, 2002, to the present.

In its filing, Covansys said it “intends to cooperate to the fullest extent possible in the production of the requested documents.”

As Crain’s first reported in its April 4 issue, a lack of internal controls since at least 2001 has the company scrambling to change accounting methods. Also, the story reported that the SEC requested information from the company’s former auditors, PricewaterhouseCoopers L.L.C., last fall.

Covansys has restated financial results for 2002, 2003 and part of 2004, resulting in a cumulative decline in net income of about $3.2 million.

The original article can be found here.

-- MDT