AremisSoft Rocked by SEC Probe; CEO, CFO Resign

After its stock was halted for two days, AremisSoft (AREM Quote) said two of its top executives -- Chairman, founder and co-CEO Lycourgos Kyprianou and CFO Michael Tymvios -- have resigned, and it revealed that the Securities and Exchange Commission is investigating its contract with the National Health Insurance Fund of Bulgaria. The company also said its earnings and revenues for the second quarter and for the year would fall substantially short of analysts' expectations.

The news is an abrupt about-face for AremisSoft, which has avoided answering questions first raised by this column about the value of its contract in Bulgaria.

AremisSoft said the SEC is investigating the discrepancy cited repeatedly by this column over the amount of money the company claimed it was paid by the Bulgarian Health Insurance Fund. Fund officials said they had paid AremisSoft $1.7 million; AremisSoft said it had received and recognized as revenue from the fund more than $7 million. The company never responded to questions raised by this column and The New York Times about the discrepancy. ...