Park City Capital Inc. asked for the resignation of AdCare Health Systems Inc. Chairman and CEO William McBride after questioning whether he had earned a master's degree.
The investor, which along with affiliates owns about 6.1% of AdCare Health, said McBride's claim of having received a Masters in Business Administration from the University of California Los Angeles could not be verified.
Park City said that based on third-party research commissioned by Park City and another party, McBride does not have an MBA from UCLA. The third-party researcher contacted UCLA, which reported that it has no records of McBride earning an MBA at the university.
In addition, the investor said the CEO has not denied or refuted its claim since he was provided with this information by Park City.
AdCare failed to file its Form 10-K for 2016 with the SEC by the due date of March 31, stating in its notification of late filing that it has established an independent committee of the board to conduct an internal investigation regarding the circumstances surrounding the representation of McBride's educational credentials and related matters.
The special committee expects to hire independent legal counsel to assist it in conducting the investigation. AdCare will not be able to file its annual report until the committee completes the investigation.
Park City urged the company to cease the delay that is "causing harm to the company" and take immediate action to remove McBride as the principal executive officer in charge of the company's business operations and public disclosures.
"If McBride does not resign immediately, we believe the AdCare board should terminate him," the investor stated.