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LOUISIANA RECORD

Thursday, April 18, 2024

Trustee accuses physician providers of fraudulent transfer

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NEW ORLEANS — A trustee is suing a group of Louisiana medical providers, alleging fraudulent transfer.

David V. Adler filed a lawsuit March 18 in U.S. Bankruptcy Court for the Eastern District of Louisiana against The Schumacher Group of Louisiana, Inc., St. Martin Emergency Group LLC, Lafourche Emergency Group LLC and Eunice Emergency Group LLC, alleging they violated the United States Bankruptcy Code.

According to the complaint, Adler suffered financial damages because because debtor Phillip L. Reed, an emergency physician, entered into a physician agreements with the defendants, to provide medical services to hospitals. Under the agreement, the suit says, Reed appointed the defendants to bill clients for his professional services. 

They provided the services, the suit says  but made payments to a company called Emergency Care Services LLC, owned by Reed's wife Kathryn Reed, and no payments were made to Reed's wholly owned professional medical company, Emergency Physician Services LLC. 

The lawsuit states Reed did not disclose the transferred receivables in his sworn statement of financial affairs.

Adler request a trial by jury, seek to void the transferred receivables, an award of value equal to the transferred receivables, an order directing the payment of $668,044.99, plus interest, attorney fees, legal costs and other relief that is just. He is represented by David J. Messina and Fernand Laudumiey of Gordon Arata McCollam Duplantis & Eagan LLC in New Orleans.

U.S. Bankruptcy Court for the Eastern District of Louisiana Case number 16-01012

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