Company Chief Resigns Due to Audit Findings
The REIT discovered that certain transactions were not properly recorded from 1994 to 1998. As a result of the resignations of J. Donald Nichols (CEO), Jeb Hughes and C. Sheldon Whittelsey, the company's stock plunged more than 40 percent.
It was reported that many of the transactions, believed to be third-party transactions and income for Hughes and Whittelsey, were approved by Nichols, but it is believed he did not receive any personal compensation related to the amounts.
The names of the auditors of the REIT were not disclosed.