Resume snafu at MCG Capital

Bryan Mitchell has stepped down as Chairman of MCG Capital Corp. (O:MCGC), but is still CEO, after admitting that he misrepresented his educational background. MCG is a finance company which targets companies with $10-150M in annual revenues in communications, media and technology. Its clients include two radio companies - - NBG Radio Networks (O:NSBD) and New Northwest Broadcasters.

Director Wallace Millner III, who is chairman of the company's audit committee, has been named Chairman of the Board of Directors - - a post he previously held from 1998 through May 2001.

Mitchell informed the company's board of directors on Friday (11/1) that he did not complete his bachelor's degree at Syracuse University, as claimed on his resume. On Sunday (11/3) the board of directors announced that it had accepted Mitchell's resignation as Chairman, but that he would be retained as CEO. However, he is required to repay his $350K 2001 bonus, won't be eligible for a bonus this year, and must use all of the dividends from his MCG stock to repay a $1.2M loan that was used to purchase company stock.

Millner announced the board's decision: "We found no reason to suggest that Bryan has made any other erroneous representations and we found no reason for any concern as to the fairness and accuracy of the Company's financial statements and disclosures. We are all deeply disappointed that Bryan inaccurately represented his academic credentials to the Company and its shareholders. There can be no excuse for this failure on his part. He has needlessly disserved himself and his colleagues. The Board believes that this error in judgment was an isolated occurrence."