Kindred Healthcare bought executive's $2 million home for 'personal safety' concerns
Louisville-based Kindred Healthcare told shareholders Tuesday that it spent $2.15 million to buy the Glenview home of a top company executive last year out of concern for the “personal safety” of the executive and his family.
LOUISVILLE, Ky. (WDRB) -- Louisville-based Kindred Healthcare told shareholders Tuesday that it spent $2.15 million to buy the Glenview home of a top company executive last year out of concern for the “personal safety” of the executive and his family.
Tuesday’s filing marks the first time Kindred has publicly acknowledged buying Chief Financial Officer Stephen Farber’s home at 3611 Glenview Ave.
The Dec. 18 sale represented a $450,000 gain for Farber over the $1.7 million he paid for the 6,000-sqaure-foot home less than two years prior, on March 27, 2014.
In its annual proxy statement detailing executive compensation, Kindred said it bought the Glenview home “to allow prompt relocation of (Farber) and his family.”
Since last fall, Farber and his wife Rachel have been embroiled in litigation with their former neighbor, real estate developer David Fenley, over use of a shared driveway between their homes and the removal of trees and damage to property. The Courier-Journal first reported the dispute in January.
Despite Kindred’s claim in Tuesday’s proxy statement, the Farbers’ personal safety was never in danger, said Dennis Murrell, Fenley’s attorney.
“David never threatened the Farbers in any shape or form,” Murrell said in a phone interview Tuesday. “We’re talking Glenview here.”
Kindred said in the proxy filing that the $2.15 million it paid for Farber’s estate was “$250,000 lower than its appraised value.” The company also said the deal was approved by the nominating and governance committee of its board, and Kindred is now “in the process of reselling this residence.”
Susan Moss, a Kindred spokeswoman, did not respond to requests Tuesday and in January asking for more information about the transaction. Attorney Chuck Cassis, who represents the Farbers and Kindred, did not return a call Tuesday.
Farber, a former private equity executive and CFO of Tenet Healthcare Corp., joined Kindred on Feb. 3, 2014. He was the fourth-highest paid executive at Kindred last year, having earned $2.7 million in total compensation, according to Tuesday’s proxy.
On March 30, Kindred was named in an amended lawsuit filed by Fenley, which says Kindred damaged his property around Dec. 30 when it removed trees in preparation for installing a separate driveway to the former Farber property.
In November 2015 – as the driveway dispute was being litigated – Kindred disclosed in an SEC filing that an unnamed subsidiary of the company had paid Farber $250,000 “to offset relocation and other costs incurred by Mr. Farber in connection with his relocation to Louisville.”
But “some or all” of the $250,000 “relocation” payment was actually to “cover the renovation of (Farber’s) personal residence,” Fenley alleges in the complaint.
The complaint says four permits for renovation work totaling more than $200,000 were taken out for the Farber residence in 2015.
The company disclosed in April 2015 that Farber had received $110,388 in relocation reimbursements in 2014, “the year he actually relocated to Louisville,” according to the complaint.
“It is bizarre behavior,” Murrell said. “I have represented a lot of public companies and never seen anything like this.”
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