In V3.4.1 at line 712 it is (as it was in V3.4):
 
 if(nDenLats > 0){ /* Load denominator (recognition) lattices. */
    char buf1[1024],buf2[1024],buf3[1024];
    for(latn = 0; latn<nDenLats;latn++){
       if ( denLatSubDirPat[0] ){
          if ( !MaskMatch( denLatSubDirPat , buf1 , datafn_lat ) )
              HError(2319,"HERest: mask %s has no match with segemnt %s"
               , denLatSubDirPat , datafn_lat );
          MakeFN(buf1,denLatDir[latn],NULL,buf2);
       }
       else
       [...]

while in my version of HMMIRest.c I have:
 
 if(nDenLats > 0){ /* Load denominator (recognition) lattices. */
    char buf1[1024],buf2[1024],buf3[1024];
    if ( denLatSubDirPat[0] )
       if ( !MaskMatch( denLatSubDirPat , buf1 , datafn_lat ) )
          HError(2319,"HERest: mask %s has no match with segemnt %s" ,
           denLatSubDirPat , datafn_lat );
    for(latn = 0; latn<nDenLats;latn++){
        if ( denLatSubDirPat[0] )
           MakeFN(buf1,denLatDir[latn],NULL,buf2);
        else
        [...]
 
where HError() is out of the for loop, and it seems to me it's more correct 
since variables 'denLatSubDirPat', 'buf1', and 'datafn_lat' don't change in the for loop.