The surrender did not include an admission of wrongdoing. AYA's parent company, Community Education Centers, Inc., also announced long standing negotiations to sell the Montrose facility to its current director.
The AYA is a wilderness therapy program for at-risk youth. It came under the investigation of the Colorado Department of Health and Human Services, Colorado Attorney General and local district attorney after program participant Caleb Jensen died on an outing.
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"Since May 9, the date that our license to operate was suspended, we have not maintained or accepted any other children into the program. As a result, we have continued to carry expenses and salaries for a program that is no longer receiving revenues," John Clancy, chairman and CEO of CECI wrote in a July 11 letter to the state.
Clancy wrote that quality programs were important and the company has not been able to renew its customer contracts because of AYA's suspended status.
"We wish to keep our reputation intact. In that regard, it was our initial intent to pursue reinstatement of our license, as it is our firm belief that our program and its staff performed exactly as it should have and at all times in full compliance with the regulations that govern it," Clancy's letter stated.
"We are...without admission of wrongdoing of any sort, surrendering our license to operate the AYA Colorado facility."
He said the decision to surrender the license was a business one and that, despite its "noble mission," the AYA program wasn't achieving financial gains. Clancy's letter also said CECI had already decided to sell the Montrose facility to program director Jim Omer when Jensen tragically died.
The surrender does not address any possible criminal cases that could arise from Jensen's death, state officials said.
"It essentially takes care of the administrative side of the issue," Nate Strauch, spokesman for the Colorado Attorney General's office said. "It wouldn't affect any criminal proceedings. It's a favorable outcome for the state."
District Attorney Myrl Serra said he is still investigating and considering whether to pursue charges. "I will make an independent decision when my investigation is complete. It (license surrender) has no effect on how I want to proceed or not," he said.
Bill Palatucci, CECI's senior vice president and general counsel, said he could not comment beyond the confines of Clancy's letter. He previously called Jensen's death a tragedy and said the company did not believe anyone had done anything wrong.
Contact Katharhynn Heidelberg via e-mail at katharhynnh@montrosepress.com
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