New Koosharem Corp., the corporate holding company of the Select Staffing/EmployBridge family of companies, announced its board of directors has terminated D. Stephen Sorensen’s employment for cause.

The Select Family of Staffing Companies completed its $410 million acquisition of EmployBridge on Feb. 9, and previously announced Sorensen, who had served as CEO, would retire from management to serve as board vice chairman.

The action was taken based on the initial findings of an ongoing independent investigation into Sorensen’s conduct, according to New Koosharem. The board believes Sorensen orchestrated the improper diversion of $2.7 million to a Sorensen-controlled entity and the after-the-fact fabrication and back-dating of a related document in order to cover up this activity.

The board is exploring all remedies to recover these allegedly misappropriated funds.

New Koosharem reported the board believes, based on the initial results of the investigation, that there were no improprieties on the part of any other current employees of Select Staffing.

The Atlanta-based company ranks among large US staffing firms and provides staffing services in the logistics, manufacturing, transportation and professional sectors. It has almost 20,000 customers and more than 490 branch and on-site locations across North America.

Sorensen was listed in Staffing Industry Analysts’ list of 100 most influential people in the staffing industry.