ALEXANDER GRANT IS DIGGING IN
By Steven Greenhouse
A not-so- funny thing happened to Alexander Grant & Company, the nation's 11th- largest accounting firm, on its way to the altar to merge with Fox & Company, the nation's 13th-largest. Not only has Alexander Grant, a Chicago-based firm with 335 partners, become mired in the imbroglio involving E.S.M. Government Securities Inc., the failed Florida securities firm, but the managing partner of Alexander Grant's Fort Lauderdale, Fla., office has been sued for filing false audits of E.S.M. and receiving $125,000 in secret payments in return. ''This is the first time we're aware that a C.P.A. has been accused of taking funds from a client,'' said Arthur W. Bowman, editor of the Public Accounting Report, an industry journal. ''It's an embarrassment for the profession.'' 'A Black Eye' Roman L. Weil, an accounting professor at the University of Chicago, added, ''It will give Alexander Grant a black eye.'' And Harris J. Amhowitz, chief counsel for Coopers & Lybrand, said, ''It's a tragedy for Alexander Grant's partners.''