Incomnet Votes to Depose Exec in Pay Dispute

Incomnet Inc. said its board has moved to depose the company’s chairman, Joel Greenberg, in a dispute over his pay and alleged failure to pay back profit earned by trading Incomnet stock.

Incomnet said its directors have nominated Melvyn Reznick, its president and chief executive, to replace Greenberg as chairman. Greenberg, in a letter to management, warned he may mount a proxy contest to regain control of the company.

The management shake-up comes after months of turmoil at Woodland Hills-based Incomnet, which is involved in several businesses, including long-distance telephone service and eyeglass lenses.

Incomnet shares have lost more than three-quarters of their value since hitting a high of $23.50 in July.

Since then, lawsuits have been filed alleging securities fraud and its former chairman, Sam Schwartz, who maintained a fund to shield the company’s stock price from short-sellers, has resigned.

Shares of Incomnet rose 12.5 cents Monday to $5.3125.