Bon Secours Health System, Marriottsville, Md., is drawing scrutiny from the Securities and Exchange Commission and the U.S. attorney's office in Baltimore after disclosing earlier this year that a former chief financial officer at Bon Secours Cottage Health Services in Grosse Pointe, Mich., had intentionally inflated the hospital's earnings. Bon Secours was subpoenaed by the U.S. attorney's office for documents related to accounting irregularities at Cottage Health and a nursing home in St. Clair Shores, Mich., and the SEC told the system it had started an informal inquiry into the matter, the Bond Buyer reported. Bon Secours' audit committee concluded that a former CFO at Cottage Health intentionally overstated operating income and assets while understating liabilities over a seven-year period. Bon Secours, which operates 24 hospitals in nine states, said it would restate net income for the past two years. An SEC spokesman declined to comment on the inquiry. Bon Secours and the U.S. attorney's office did not return telephone calls by deadline. -- by Patrick Reilly
Bon Secours probed over Mich. unit's accounting
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