Bay Shore, N.Y. Graham-Field Health Products has again swept clean its corporate office, naming its fourth chief executive officer since July 1998.

The newest housecleaning took place in late March, only days after an internal audit discovered accounting irregularities and errors amounting to an additional $10 million in losses for fiscal 1996 and 1997, officials said.

The company brought in John McGregor and J. Soren Reynertson from turnaround expert Jay Alix & Associates. McGregor is president and CEO, replacing Paul Bellamy, who six weeks earlier replaced Rodney Price. Price had replaced Irwin Selinger in July 1998 after the company reported fiscal 1997 earnings losses. Reynertson replaces Brady Mullinax, who was hired as chief financial officer five months earlier. Rupert Morley, operations director of Graham-Field's largest shareholder, Brierly Investments Ltd., is chairman, replacing David Delaney.

The company said Bellamy's resignation resulted from "disagreement over various management issues" with the board, and was unrelated to the accounting investigation.

Morely said the new team will negotiate with lenders to stave off loan defaults, a situation that prompted Standard & Poor's to consider downgrading the company's credit rating.

Graham-Field initiated its internal investigation after management discovered information that raised questions about the financial results, officials said. The adjustment raises losses for fiscal 1996 from $8.96 million to $10.66 million and for fiscal 1997 from $30.23 million to $38.63 million. The accounting problems occurred when subsidiaries transferred products to each other and counted the transactions as revenue instead of a transfer of assets, officials said.

Because of the audit, announcement of the company's fiscal 1998 financial results were delayed. Company officials said the irregularities do not affect those results, which are expected to show a "significant" pre-tax loss.

Combined with expected adjustments for fiscal 1996 and 1997, the losses put the company in jeopardy of defaulting on loans unless it obtains waivers under various financial covenants from lender banks, officials said. At press time, Standard & Poor's had placed the company on its CreditWatch with negative implications.