American Apparel Finds CEO Misused Funds, Helped Discredit Employee

An internal investigation at American Apparel has found that its CEO Dov Charney violated company policies, ranging from misusing company funds to failing to stop the discrediting of at least one former employee who had accused him of sexual harassment, a person close to the matter said. The company's board ousted the 45-year-old Charney as chairman on Wednesday, citing unspecified allegations of misconduct. It suspended him as president and CEO, and plans to fire him for cause, following a 30-day period stipulated in his contract.