Intrepid Potash Inc. said President Patrick Avery resigned Wednesday after confirming that he didn't receive two college degrees cited in a prospectus.

"We are disappointed with this matter," Chief Executive Officer Robert Jornayvaz III said in a statement. "His misrepresentation of his academic credentials was a violation under the company's Code of Business Conduct."

Avery will serve as a consultant to the Denver company for an undetermined amount of time, the company said.

Before the resignation Wednesday, Intrepid Potash, a manufacturer of fertilizer, evaluated whether Avery was awarded some of the college degrees cited in a prospectus, spokesman William Kent said.

When Intrepid Potash first sold shares to the public in April, it said in the prospectus that Avery received bachelor of arts degrees in biology and chemistry from the University of Colorado.

Avery attended from 1970 through 1975 and "no degree was awarded for reasons unknown," according to a statement faxed to Bloomberg News from the university registrar's office Feb. 9.

The Intrepid Potash prospectus also said Avery received a master's degree in engineering from Loyola, without identifying a specific school or its location.

Avery studied engineering at Loyola Marymount University in Los Angeles from 1982 to 1985, but the school has no record of awarding him a degree, spokeswoman Christine Nangle said.

Avery didn't return four voice-mail messages. Kent said Avery isn't available for comment.

Under Avery's biography on the company's Web site Wednesday, both degrees were listed. Several hours later, Avery's bio was erased from the site.

The Fraud Discovery Institute, a San Diego-based licensed private investigator, uncovered discrepancies in the prospectus, said co-founder Barry Minkow, who served more than seven years in federal prison for fraud while running ZZZZ Best Co.

The company's Web site says it's the largest U.S. producer of potassium compound, which is used as a fertilizer on crops such as corn, wheat and potatoes.

On Dec. 18, the company predicted fourth-quarter sales to be less than half of the $146.3 million it posted in the third quarter.

Intrepid Potash fell $1.73, or 7.4 percent, to $21.79 at 2:05 p.m. in New York Stock Exchange composite trading.

Before Wednesday, the shares declined 27 percent since the company went public at $32 each in April.

Minkow said he owns put options on Intrepid Potash. Owners of put options on a company have the right to sell the stock through a given date and for a specific price.

Minkow almost always holds a position in securities his organization examines, according to a disclaimer on his Web site.

Minkow has uncovered other cases of false reporting of degrees, including that of Microsemi Corp. Chief Executive Officer James Peterson.

In January, Microsemi's board said Peterson made up degrees from Brigham Young University.

Microsemi Chairman Dennis Leibel said the board decided to retain Peterson because of his record building a profitable company.

Peterson will pay $100,000 to the company and forgo a bonus for the current fiscal year, Microsemi said.

Microsemi said in a Feb. 4 regulatory filing it has received an informal inquiry from the Securities and Exchange Commission and intends to cooperate.