A Medical Device Daily

The board of Sunrise Senior Living (McLean, Virginia) last week reported the “separation from the company” of three senior officers following completion of a fact-finding investigation by a special committee concerning accruals and reserves.

The company, “effective immediately,” released: Thomas Newell, president since 2000; Larry Hulse, CEO of the company’s insurance captive since 2005 and the company’s CFO from April 2000 to August 2005; and Carl Adams, treasurer since 2005 and former chief accounting officer from 2000 through November 2004.

The company said this means that the entire senior finance team in place during the years covered by a pending restatement is no longer with the company, and it will complete its restatement under the leadership of a new senior finance team: CFO Richard Nadeau, who joined the company in September, and chief accounting officer Julie Pangelinan, who joined the company in April 2006.

Sunrise said that the committee found that inappropriate accounting occurred during the 3Q03 through 4Q05 period and that the effect of adjustments arising from these findings, coupled with adjustments to other items, are not expected to increase previously disclosed restatement impacts.

Stephen Harlan, chairman of the audit committee, said that the investigation “and the actions taken by the directors reflect the board’s commitment to accurate financial reporting and strong internal controls and to act in the best interests of the company and all of its stakeholders ... . [And] are an important step forward in the process of restoring confidence in the company’s management and financial reporting.”

As of Sept. 30, Sunrise operated 454 communities in the U.S., Canada, Germany and the UK, offering personalized senior living services, ranging from rehabilitative and hospice care to independent living.