Defendant Name: American Renal Associates Holdings, Inc.

Defendant Type: Public Company
SIC Code: 8092
CUSIP: 02922710

Initial Case Details

Legal Case Name SEC v. American Renal Associates Holdings, Inc., Jonathan L. Wilcox, Jason M. Boucher, and Karen J. Smith
First Document Date 06-Dec-2021
Initial Filing Format Civil Proceeding
Case Number 21-cv-10366
Allegation Type Issuer Reporting and Disclosure
Federal District Court New York, Southern District of New York

Violations Alleged

Exchange Act
• Sec 10(b) + Rule 10b-5
• Rule 12b-20
• Sec 13(a)
• Rule 13a-1
• Rule 13a-11
• Rule 13a-13
• Sec 13(b)(2)(A)
• Sec 13(b)(2)(B)
Securities Act
• Sec 17(a) (Not specified)
Additionally, Jonathan L. Wilcox is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Sec 10(b) + Rule 10b-5 of the Exchange Act (willfully/knowingly).
Jason M. Boucher is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Sec 10(b) + Rule 10b-5 of the Exchange Act (willfully/knowingly).
Karen J. Smith is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Sec 10(b) + Rule 10b-5 of the Exchange Act (willfully/knowingly).
Jonathan L. Wilcox is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Rule 12b-20 of the Exchange Act (willfully/knowingly).
Jason M. Boucher is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Rule 12b-20 of the Exchange Act (willfully/knowingly).
Karen J. Smith is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Rule 12b-20 of the Exchange Act (willfully/knowingly).
Jonathan L. Wilcox is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Sec 13(a) of the Exchange Act (willfully/knowingly).
Jason M. Boucher is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Sec 13(a) of the Exchange Act (willfully/knowingly).
Karen J. Smith is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Sec 13(a) of the Exchange Act (willfully/knowingly).
Jonathan L. Wilcox is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Rule 13a-1 of the Exchange Act (willfully/knowingly).
Jason M. Boucher is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Rule 13a-1 of the Exchange Act (willfully/knowingly).
Karen J. Smith is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Rule 13a-1 of the Exchange Act (willfully/knowingly).
Jonathan L. Wilcox is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Rule 13a-11 of the Exchange Act (willfully/knowingly).
Jason M. Boucher is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Rule 13a-11 of the Exchange Act (willfully/knowingly).
Karen J. Smith is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Rule 13a-11 of the Exchange Act (willfully/knowingly).
Jonathan L. Wilcox is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Rule 13a-13 of the Exchange Act (willfully/knowingly).
Jason M. Boucher is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Rule 13a-13 of the Exchange Act (willfully/knowingly).
Karen J. Smith is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Rule 13a-13 of the Exchange Act (willfully/knowingly).
Jonathan L. Wilcox is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Sec 13(b)(2)(A) of the Exchange Act (willfully/knowingly).
Jason M. Boucher is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Sec 13(b)(2)(A) of the Exchange Act (willfully/knowingly).
Karen J. Smith is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Sec 13(b)(2)(A) of the Exchange Act (willfully/knowingly).
Jonathan L. Wilcox is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Sec 13(b)(2)(B) of the Exchange Act (willfully/knowingly).
Jason M. Boucher is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Sec 13(b)(2)(B) of the Exchange Act (willfully/knowingly).
Karen J. Smith is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Sec 13(b)(2)(B) of the Exchange Act (willfully/knowingly).
Jonathan L. Wilcox is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Sec 17(a) (Not specified) of the Securities Act (willfully/knowingly).
Jason M. Boucher is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Sec 17(a) (Not specified) of the Securities Act (willfully/knowingly).
Karen J. Smith is alleged to have aided and abetted American Renal Associates Holdings, Inc.'s violation of Sec 17(a) (Not specified) of the Securities Act (willfully/knowingly).

Resolutions

First Resolution Date 06-Dec-2021
Headline Total Penalty and Disgorgement $2,000,000

Related Documents:

comp-pr2021-252 06-Dec-2021 Complaint
Complaint
The SEC stated: "This is an accounting fraud case arising from a multimillion dollar scheme by three former ARA finance executives--Wilcox, Boucher, and Smith--to improperly manipulate certain revenue adjustments to make it appear that ARA's financial performance was better than it actually was."
LR-25282 06-Dec-2021 Litigation Release
SEC Charges Dialysis Provider and Three Former Senior Executives with Revenue Manipulation Scheme
The SEC stated: "[It] charged American Renal Associates Holdings, Inc. (ARA), a provider of dialysis services through clinics across the country, with engaging in a revenue manipulation scheme that resulted in the restatement of several years of financial reporting. The SEC also charged two of ARA's former chief financial officers, Jonathan Wilcox and Jason Boucher, and former ARA Controller, Karen Smith, for their misconduct related to the scheme."
2021-252 06-Dec-2021 Press Release--Civil Action
SEC Charges Dialysis Provider and Three Former Senior Executives with Revenue Manipulation Scheme
The SEC stated that: "[It] charged American Renal Associates Holdings, Inc. (ARA), a provider of dialysis services through clinics across the country, with engaging in a revenue manipulation scheme that resulted in the restatement of several years of financial reporting. The SEC also charged two of ARA’s former chief financial officers, Jonathan Wilcox and Jason Boucher, and former ARA Controller, Karen Smith, for their misconduct related to the scheme."
court_doc11_21-cv-10366 08-Dec-2021 Court Docket Document
Final Judgment as to Defendant American Renal Associates Holdings, Inc.
The Court stated: "Defendant American Renal Associates Holdings, Inc. (“Defendant”) . . . consented to the Court’s jurisdiction over Defendant and the subject matter of this action; consented to entry of this Final Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction); waived findings of fact and conclusions of law; and waived any right to appeal from this Final Judgment."

Other Defendants in Action:

Jonathan L. Wilcox
Jason M. Boucher
Karen J. Smith