Friedman's CFO Resigns After Just 5 Months

The chief financial officer of troubled US jewelry retailer Friedman's has resigned after just five months in the post.

Friedman's, facing a federal fraud probe, said Richard Cartoon, who was appointed on December 8, resigned as CFO on Wednesday effective immediately.

The company did not give a reason for his departure, and did not name a successor.

Friedman's, which is facing investigation resulting from a fraud lawsuit filed by Capital Factors Inc against a company that supplied jewelry to Friedman's and others, also named five new directors.

The company is under investigation by the Justice Department and the Securities Exchange Commission and is in the process of restating its financial results for at least the last three years because of accounting for bad debts.

Only last month it received official notice that the SEC is considering civil action against the firm over accusations of securities law violations.