SEC investigating Zoltek accounting errors

According to a regulatory filing, on May 13 the SEC informed Zoltek that it was conducting a fact-finding investigation and requested that the company retain certain records and provide information and documents related to the accounting errors.

Zoltek, a supplier of carbon fibers used in wind turbine blades and other equipment, said it plans to fully cooperate with the investigation.

Earlier this month, the St. Louis-based company said its audit committee determined that a $175,000 payment by a Zoltek subsidiary in September 2007 was not properly authorized or reported in the company's financial records. Zoltek said it also found a similar payment of $75,000 in January 2008.

At the same time, Kevin J. Schott resigned as the company's CFO, effective May 1.

Zoltek did not give a reason for Schott's departure, but said in an SEC filing that Schott would pay the company $250,000 in connection with his resignation.

In addition, Zoltek released Schott from claims related to the payments and Schott released the company from claims related to his employment.

As a result of the errors, the company said its financial statements as of Sept. 30, and for the fiscal year and quarter ended Dec. 31, should no longer be relied upon. The company also said it is investigating whether any other unauthorized transactions have occurred.