Doral Announces Management Shake-up

The chief financial officer of mortgage lender Doral Financial Corp. has been terminated, several senior executives have resigned, and several others have been appointed in connection with the company's financial restatement process.Ricardo Melendez has been terminated as chief financial officer and Lidio Soriano has been named to replace him on an interim basis, according to the San Juan, Puerto Rico-based residential lender. Salomon Levis is resigning as chief executive officer and a director of Doral effective Sept. 15, and he will be replaced on an interim basis by John Ward. Also resigning are David Levis, as director emeritus, and Mario S. Levis, as treasurer. Doral said Zoila Levis, the company's president and chief operating officer, has been named vice chairman of the board, and Julio Micheo has been named treasurer. The company said its board plans to undertake searches for a permanent CEO and CFO. "After receiving a report from Latham & Watkins LLP, independent counsel for the outside directors of the board, the board determined that these management changes are in the best interest of the company as it proceeds to resolve the issues raised by the need to restate its financial statements as announced on April 19, 2005," Doral said.