Nara Bancorp Inc. said Tuesday that it received a Nasdaq violation notice for failing to file its first-quarter earnings report, which could potentially drop it from listing on the exchange.
Nara, a Los Angeles-based, Korean-American bank with $1 billion in assets, attended a Nasdaq hearing on May 12 to address the issue of filing amended financial statements for 2002 and 2003, as well as a current 2004 10-K and 2005 10-Q for the quarter ended March 31. The panel will determine whether it can maintain its security listing.
Nara's problems began in late March when the company said it would have to restate its 2002 financial results after finding it had not properly accounted for $600,000 in automobile and country club expenses to its former president and chief executive.
A special subcommittee of its audit committee investigated the issue and found that the non-disclosure would have a "material effect" on 2002 earnings, which were subsequently reduced by a penny a share to $15.1 million, or 66 cents a share.
Since then, Nara removed the former president and chief executive, Benjamin Hong, who claims he was never paid the money and that the company did not need to restate its financials.
In addition, the company reassigned its chief financial officer to other duties and appointed a new acting chief financial officer, Christine Oh.
The company has not said when it will file its financial statements with the Securities and Exchange Commission.
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