Patrick Avery, president of Intrepid Potash Inc., didn’t receive the bachelor’s degree from the University of Colorado the company lists in its prospectus, the school’s registrar said.
Avery attended the University of Colorado from the fall of 1970 to the spring of 1975 as a full-time student and “no degree was awarded for reasons unknown,” according to a statement faxed to Bloomberg News from the university registrar’s office.
When Intrepid Potash first sold shares to the public in April, it said in the prospectus that Avery received bachelor of arts degrees in biology and chemistry from the University of Colorado. Avery has been president and chief operating officer of Intrepid Potash since its formation in November 2007, the prospectus said.
The Intrepid Potash prospectus also said Avery received a master’s degree in engineering from Loyola, without identifying a specific school or its location. Avery studied engineering at Loyola Marymount University in Los Angeles from 1982 to 1985, but the school has no record of awarding him a degree, spokeswoman Christine Nangle said.
Avery didn’t respond to two voicemail messages left for him. Intrepid Potash spokesman William Kent said the company is evaluating the information and will make a comment if necessary.
Sales Drop
The Denver-based company’s Web site says it’s the largest U.S. producer of potassium compound, which is used as a fertilizer on crops such as corn, wheat and potatoes. On Dec. 18, the company predicted fourth-quarter sales to be less than half of the $146.3 million it posted in the third quarter.
Intrepid Potash fell 52 cents, or 2.2 percent, to $23 at 9:33 a.m. in New York Stock Exchange composite trading. They have declined 29 percent since the company went public at $32 a share in April. The company’s market value is $1.76 billion.
Avery earned a master’s degree in business administration from Pepperdine University in Malibu, California, Intrepid Potash said in the prospectus. Pepperdine spokesman F. Douglass Gore III said Avery graduated in 1996.
Avery earned the degree through a special program for senior executives, who can get a waiver from a required undergraduate degree, Gore said.
The Fraud Discovery Institute, a San Diego-based licensed private investigator, uncovered the discrepancy with software to ferret out irregularities at publicly traded companies, said co- founder Barry Minkow, who served more than seven years in federal prison after being convicted of fraud while running ZZZZ Best Co.
Put Options
Minkow said he owns put options on Intrepid Potash. Owners of put options on a company have the right to sell the stock through a given date and for a specific price. Minkow almost always holds a position in securities his organization examines, according to a disclaimer on his Web site.
Minkow has uncovered other cases of false reporting of degrees, including that of Microsemi Corp. Chief Executive Officer James Peterson.
In January, Microsemi’s board said Peterson made up degrees from Brigham Young University. Microsemi Chairman Dennis Leibel said the board decided to retain Peterson because of his record building a profitable company. Peterson will pay $100,000 to the company and forgo a bonus for the current fiscal year, Microsemi said. Microsemi said in a Feb. 4 regulatory filing it has received an informal inquiry from the U.S. Securities and Exchange Commission and intends to cooperate.
