The Securities and Exchange Commission said it has resolved its litigation with Sun Communities over the company's accounting practices and will impose a $25,000 penalty on the mobile home community developer's former CFO.
Without admitting or denying the SEC's allegations, Jeffrey C. Jorissen agreed to pay the penalty and be suspended from appearing or practicing before the SEC as an accountant, but he may apply for reinstatement in two years. The SEC dismissed its claims against Sun Communities' current CEO Gary A. Shiffman and former controller Mary A. Petrella.
According to the SEC's original complaint in February 2006, Sun failed to properly account for losses from its investment in SunChamp, a joint venture that developed manufactured-housing communities, and materially overstated its income between January 2000 and December 2002. The complaint alleged that Sun maintained an "improper general reserve" and "smoothed" earnings by recording expenses in the wrong accounting periods.
