Ventas Dismisses Ernst & Young as Auditor

Ventas, Inc. announced that they have dismissed New York-based Ernst & Young (E&Y) (FY13 gross revenue of $9.1 billion) as its public accounting firm, effective July 5, due to E&Y’s determination that it was not independent solely as a result of an inappropriate personal relationship between an E&Y partner and Ventas’s former chief accounting officer and controller.

E&Y’s decision to withdraw such audit reports and review was made exclusively due to the personal relationship.

Ventas also announced that, following the dismissal, its audit committee engaged KPMG LLP as the company’s independent public accounting firm. KPMG will complete a re-audit and re-review of the relevant periods. There can be no assurance that KPMG will reach the same conclusions as E&Y regarding the application of accounting standards, management estimates or other factors affecting the company’s financial statements.

Ventras also announced today the separation of Robert Brehl from his position as Ventas’s chief accounting officer and controller in relation to these matters.

“Ventas stands for integrity, reliability and transparency with investors, lenders, employees and other stakeholders,” says Ventas chairman and CEO Debra Cafaro. “When we learned of this isolated situation, we investigated the facts immediately, notified E&Y promptly and took swift and decisive action.”