Sunrise Senior Living, McLean, Va., said three of its executives will leave the company, effective immediately, as the senior-living provider concluded the fact-finding portion of a previously announced investigation by a special independent committee of its board. In a news release, Sunrise announced the separation from the company of Thomas Newell, president since April 2000; Larry Hulse, chief executive officer of Sunrises captive insurance unit since August 2005 and chief financial officer of the company from April 2000 to August 2005; and Carl Adams, treasurer since November 2005, after the board considered results from the committees work, but the company did not offer additional details. A representative for Sunrise was not available at deadline.
The company also said the committee found that inappropriate accounting occurred during the third quarter of 2003 through the fourth quarter of 2005, but that the findings are not expected to increase the previously disclosed total restatement impacts. In July, Sunrise said it estimates that the cumulative impact of the restatement will reduce net income for all periods affected, including 1999 to 2005, by about $120 million to $125 million. At that time, the company said it was considering strategic alternatives, including a possible sale.
According to Sunrise, all members of the finance team during the years of the restatement are no longer with the company, which will complete its restatement under the supervision of Richard Nadeau, who began as chief financial officer in September 2007, and Julie Pangelinan, who became the companys chief accounting officer in April of this year.
Sunrise said it no longer plans to file a 2005 form 10-K/A or 2006 form 10-Qs, but that it expects to file its 2006 form 10-K no later than March 17, 2008. That will be followed by the filing of the 2007 form 10-K, form 10-Q for the quarter ending March 31, 2008 and form 10-Qs for the quarters ended March 31, 2007, June 30, 2007, and Sept. 30, 2007. -- by Jessica Zigmond
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