Juanita Jackson died in July 2003, five weeks after she was removed from a Florida nursing home where her family said continual neglect led to multiple bedsores, malnutrition and a fall that injured her head.The family won one trial. A second is necessary for justice to be delivered.
Trying to collect a $110 million verdict against two nursing home companies has led her family on a four-year odyssey through a maze of private-equity firms and shell companies to a bankruptcy court trial that began today.
Trans Healthcare Inc. and Trans Health Management Inc., which the plaintiffs claimed operated the homes, never appealed or paid the 2010 verdict -- $55 million each -- awarded by a state court jury in Bartow, Florida. Collection was thwarted through a complex transaction that sent Trans Healthcare’s liabilities to a shell company called Fundamental Long Term Care Inc., which had no assets, while creating a solvent nursing home chain that was protected from judgments, lawyers for Jackson’s family contend.
The defendants including private-equity firm GTCR Golder Rauner LLC counter that they were never responsible for negligence at the homes and weren’t involved in a scheme to send liabilities to an insolvent company.
GTCR's founder was Rahm Emanuel's mentor, setting him up for his first investment bank gig which gave Rahm $18 million. With his core wealth established Rahm could return to politics and work on behalf of the landed gentry. Dealbook noted:
Mr. Emanuel represented GTCR Golder Rauner, a Chicago private equity firm that was buying the business for an affiliate. Bruce Rauner, the firm’s chairman, had first met Mr. Emanuel when he was still exploring job prospects in Chicago after getting a call from Mr. Bowles, an old friend.Instead of private equity, Mr. Rauner advised Mr. Emanuel to pursue investment banking, where his political experience might be more valuable in landing deals in regulated industries.Mr. Emanuel called him back after starting at Wasserstein and asked if he could take over coverage of GTCR for his new employer. That eventually led to the nearly $500 million SecurityLink deal.
Obama, of the fiery rhetoric, brought Rahm the rich arsehole into the Oval Office. There is no evidence of Mr. Emanuel working the Trans Healthcare or Trans Health Management deals although his investment banking career went from 1998 to 2002.
Tampa Bay Times reported:
Trans Health Management Inc. was once a high flier, with 200 homes in 22 states. A Chicago private equity firm and others had created it in 2002 to take over a large, bankrupt chain.
Really, Obama showed his hand right away with his appointments, one of which announced he's leaving. Eric Holder will do well in private equity or on Wall Street. He's earned a cushy spot after six years of "Just Us."
It's a PEU world, where politicians Red and Blue love PEU...