Former assisted living CEO ordered to pay $4.2M in occupancy fraud case
Former Assisted Living Concepts (ALC) CEO Laurie Bebo was ordered to pay a $4.2 million fine for multiple securities violations by a Wisconsin judge earlier this week. According to the Journal Sentinel, violations include making false statements in securities filings, falsifying the company's books and records, and lying to the company's auditor.
Bebo was fired from ALC in May 2012, and she and former Chief Financial Officer John Buono were sued in 2014 by the Securities and Exchange Commission (SEC). According to the Journal Sentinel, authorities claim Bebo and Buono told employees to report fraudulent occupancy rates and some of the center's facilities in order to avoid violating leasing agreements.
SEC Administrative Judge Cameron Elliot said Bebo's actions "utterly failed to recognize the wrongfulness of her conduct" and that her behavior was "shamelessly egregious," the Journal Sentinel reports.
Read more about the case here.
Megan Combs was Associate Editor of I Advance Senior Care / Long Term Living from 2013-2018.
Topics: Finance , Leadership , Regulatory Compliance