Trulieve Cannabis CFO Departure Linked To Unauthorized Personal Expensing
Florida-based Trulieve Cannabis Corp TCNNF is grappling with a significant financial scandal involving its former CFO Alex D’Amico.
As investigations and potential legal measures unfold, the situation underscores the company’s dedication to fiscal responsibility, all while CEO Kim Rivers prepares to seize the spotlight as a keynote speaker at the Benzinga Cannabis Capital Conference in Chicago on September 27-28.
What Happened: Accused of seeking reimbursements for personal expenses and misusing corporate credit cards, D’Amico allegedly amassed around $400,000 in improper expenses, reported MjBiz Daily.
In its latest quarterly earnings report, Trulieve Cannabis addressed the issue, stating, “The Audit Committee and the Company determined that Mr. D’Amico engaged in conduct that was inconsistent with the Company’s policies and procedures by both submitting expense reimbursements for personal expenses as well as utilizing corporate credit cards for personal expenses.”
While the investigation has concluded, the monetary damages are yet to be repaid. Trulieve is now evaluating its next steps, which could involve seeking restitution from D’Amico and rectifying potential tax discrepancies stemming from the unapproved expenditures.
It’s worth noting that the alleged financial improprieties have not had a substantial impact on Trulieve’s financial statements, according to the company.
Trulieve’s swift response to the situation is evident in the appointment of Tim Mullany as the new CFO, succeeding Ryan Blust, who held the interim position after D’Amico’s departure. However, Mullany’s tenure was short-lived due to unforeseen personal reasons, resulting in Blust’s return to the interim CFO role as the company embarks on the search for a permanent replacement.
As for D’Amico, he took on a new role as chief financial officer at CytoSorbents, a New Jersey-based medical technology company.
Shares of Trulieve were down 1.43% at $4.14 per share after the bell on Thursday afternoon.