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December 10, 2009 at 07:00 PM
The directors of a Northeastern life insurer have moved to take away the titles of two top executives.
The board of Presidential Life Corp., Nyack, N.Y., (Nasdaq:PLFE) says it has removed Herbert Kurz from the post of chairman and Charles Snyder from the post of chief financial officer.
The Presidential Life board says a special committee of independent directors has discovered irregularities relating to the 2007 tax return filed by the Kurz Family Foundation Ltd., New City, N.Y.
Kurz, who is still a director and stockholder of Presidential Life, is also an officer and director of the foundation. The foundation is the beneficial owner of about 21% of Presidential Life’s outstanding common stock, and the foundation and Kurz’ family control about a third of the company’s stock.
In November, Kurz said he planned to ask other Presidential Life shareholders for permission to replace the current directors with a new slate.
The Kurz Family Foundation tax return under scrutiny is part of an application the foundation filed in connection with efforts to seek permission from the New York State Insurance Department to acquire a controlling interest in Presidential Life, the Presidential Life board says. The board says Kurz may have used foundation funds to pay personal expenses.
The Presidential Life board’s special committee has hired an outside law firm, Orrick, Herrington & Sutcliffe LLP, to lead an investigation of the foundation, the board says.
