Sunrise Ousts More Execs Over Accounting Woes
From the Associated Press:
Sunrise Senior Living Inc., which operates senior-residential facilities, said Thursday it has terminated multiple senior finance executives after an investigation found evidence of inappropriate accounting between the third quarter of 2003 and the end of 2005.
Thomas Newell, president since 2000; Larry Hulse, chief executive of the company's insurance captive since 2005 and chief financial officer from 2000 to 2005; and Carl Adams, treasurer since 2005 and former chief accounting officer from 2000 to 2004 will all leave the company, Sunrise Senior Living said.
The company plans to restate its financial results under a new senior finance team, led by Chief Financial Officer Richard J. Nadeau, who joined the company in September of this year, and Chief Accounting Officer Julie A. Pangelinan, who joined Sunrise in April 2006.
In November, the company said it would restate financials between 1999 and 2005, lowering net income by $130 million.
The moves stem from a review of certain allegations made by the Service Employees International Union in December 2006. The allegations included backdating and questions about the sale of stock by certain directors in the months prior to the company's May 2006 announcement of its accounting review.
Sunrise expects to file its fiscal 2006 report by March 17, including restated 2005 and 2004 statements and restated 2005 quarterly financial information. After that the company will file its fiscal 2007 results and results from the quarter ended March 31, 2008.
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