Small hospital IT vendor Computer Program and Systems Inc. of Mobile, AL filed SEC documents last night indicating that VP/CFO Darrell West has been placed on administrative leave pending an investigation into suspected misappropriation of company funds. West is suspected of using a company credit card to pay a $55,000 personal tax bill.
CPSI’s Audit Committee is conducting an internal investigation and has authorized engagement of a forensic accounting firm. The company says it expects the matter to have no impact on previously reported earnings, its financial position, or results of operations.
The publicly traded CPSI has a market capitalization of $467 million. Shares closed Wednesday at $42.55, with a 52-week range of $32.78 to $50.05.