The CEO of a $17 billion actual property big will step down after 50 years—and simply weeks after a brief vendor accused him of concealing tens of millions in self dealings

Based on a submitting with the Securities and Trade Fee, Shiffman informed the opposite 9 members of the Solar Communities board he needed to retire from his function as chief government—however he’ll preserve his seat on the board. Shiffman may even stay as CEO till the administrators discover a successor “to ensure a smooth transition,” the submitting states. 

Solar Communities introduced that it created a CEO Succession Planning Committee on Nov. 5, the identical date Shiffman alerted the board about his intent to retire the chief function he’s held for the reason that firm went public in 1993. The committee’s new constitution states that it’ll plan for an orderly CEO transition “in collaboration” with Shiffman. The Solar Communities board appointed administrators Jeff Blau and Tonya Allen as co-chairs of the brand new committee and appointed Meghan G. Baivier, Jerry Ehlinger and Hermelin as members. Hermelin was talked about in Blue Orca’s report, which acknowledged the hedge fund had taken a brief place within the firm’s inventory. 

The anticipated rent date of Solar Communities new CEO is by the tip of 2025. Within the submitting, the corporate stated, “Mr. Shiffman’s retirement is not the result of any disagreement with the Company on any matter relating to its operations, policies or practices.”

As for Hermelin, along with serving on the succession planning committee, he chaired the board’s compensation committee and served on the audit committee for nearly a decade. Shiffman allegedly took an undisclosed $4 million mortgage from Hermelin’s household, which apparently was used to purchase some of the costly houses on the market in Michigan, owned by none aside from a relative of Hermelin. Blue Orca claimed Hermelin, a board member since 2014, is a step cousin to Shiffman, too. 

“Put simply, undisclosed to investors, the family of a Board member overseeing the CEO’s compensation and Company controls has been lending the CEO money to finance the purchase of luxury real estate,” the brief report acknowledged, on the time. (In its disclaimer, Blue Orca admitted bias and hedged its accusations.) 

Hermelin, Shiffman, and the corporate didn’t instantly reply to Fortune’s request for remark. 

Amongst its a number of allegations, Blue Orca accused Shiffman of borrowing cash from one other board member on a separate event, accused the corporate of underreporting recurring capital expenditures leading to its buying and selling at a premium—and what it known as, “history of alleged accounting shenanigans and reporting failures,” pointing to a previous injunctive motion filed by the Securities and Trade Fee in opposition to Shiffman, the corporate’s chief monetary officer, and its former controller. (The SEC’s claims in opposition to Shiffman and the controller had been dismissed. The corporate settled, with out admitting to or denying allegations, however as a part of the settlement, its former CFO served a two-year suspension and paid a positive.)

In its report, the brief vendor stated it sees Solar Communities as an “egregious governance failure tainted by scandal, whose business is growing far slower and generates far less … than investors are led to believe.” Solar Communities inventory is down nearly 6% up to now 5 days, however up greater than 9% up to now 12 months. It’s nonetheless valued at near $17 billion.