Feds end Vail Resorts probe
AVON – A federal investigation of Vail Resorts’ accounting practices has ended, the ski company says. The Securities and Exchange Commission recommended no penalties or fines against the company or any present or former directors, officers or employees.The investigation began in February 2003 after the company voluntarily sought consultation from the agency. The agency investigated the company’s accounting for private-club initiation fees. In 2002, the company restated $13.9 million in earnings from 1999 to 2001 regarding the memberships. The restatement occurred because the company initially included membership fees on the books for the year they were sold rather than pro-rating them over the length of the memberships.In November 2003, an additional $3.3 million was erased from the company’s books in a second restatement of earnings to correct “in-house mistakes.” The company later named a new chief financial officer. In 2002, Vail Resorts changed its auditor from scandal-ridden Arthur Andersen to PriceWaterhouseCoopers.The company’s stock closed at $26.88, down 2.2 percent, Tuesday on the New York Stock Exchange.Vail Resorts operates Vail, Beaver Creek, Breckenridge, Keystone and Heavenly in California and Nevada. It also owns and manages hotels across the country.Staff Writer Edward Stoner can be reached at 949-0555, ext. 604, or email@example.com.Vail, Colorado
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