SEC Charges Dialysis Provider and Three Former Senior Executives with Revenue Manipulation Scheme

The Securities and Exchange Commission today 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. According to the SEC’s complaint, from 2017 through at least November 2018, ARA improperly manipulated certain revenue adjustments, called "topsides," in order to embellish ARA’s financial performance. Topside adjustments are used to reflect actual cash received from insurance companies for patient services and update initial estimates of payments ARA expected to receive.