Attorney: GTCR orchestrated shell company sale
Wednesday, Sep 24, 2014 - Posted by Rich Miller
* More federal bankruptcy testimony about the strange GTCR business deal that left elderly graphic artist Barry Saacks with control of an empty shell nursing home company…
Also Tuesday, more videotaped testimony was played in court from a different lawyer involved in the sale of Trans Healthcare to Saacks. That attorney, Brett Baker, represented New York investors who had partnered with GTCR in the nursing chain.
After the deal closed in 2006, Baker said he sent himself an email to memorialize concerns he had raised about the legitimacy of the “disheveled” elderly man being placed as the sole shareholder buying the company.
In his testimony, Baker also said lawyers for GTCR orchestrated the timing and many of the terms of the Trans Healthcare sale, which involved not only the shell company owned by Saacks but another firm that would take control of still valuable facilities run by the chain.
That second firm, partly owned by Grunstein, continued to operate nursing homes while the Saacks-controlled entity ceased to do anything other than hold liabilities of the old GTCR-owned Trans Health, lawyers for the estates have alleged.
* From the Quinn campaign…
Quinn for Illinois Media Advisory
**Wednesday, September 24, 2014**
CHICAGO – Quinn for Illinois will hold a press call with medical malpractice attorney Steven Levin to discuss new records showing more deaths, abuse and neglect at Bruce Rauner’s deadly nursing homes across the nation.
WHEN: 10 a.m.
* According to Levin’s law firm bio, he obtained a “$2.9 million Cook County record nursing home neglect verdict in a pressure sore case.” More…
Steve was among the first attorneys in the country to handle nursing home cases, and has established a reputation as one of the country’s top litigators in the area of nursing home litigation. He has advocated on behalf of hundreds of nursing home residents who have been victimized by improper care and treatment, achieving record-setting verdicts and settlements in these cases.
More importantly, Steve’s vigilance in representing victims in nursing home negligence lawsuits has brought national attention to this rampant and unacceptable problem, sending a message that mistreatment of one of society’s most vulnerable groups will not go unnoticed.
Steve is a member of the National Consumer Voice for Quality Long-Term Care’s Leadership Council, an organization dedicated to protecting the rights of nursing home residents and their families. He is also the former chair of the AAJ’s Nursing Home Litigation Group. Steve’s comments on nursing home litigation have been quoted in national news publications including The New York Times and The Wall Street Journal.
He apparently knows his stuff, but PI attorneys aren’t usually beloved figures, to say the least.
…Adding… From the Rauner campaign…
His law firm (Levin & Perconti) has given $4k to Quinn this cycle. $36k to the Democratic Party of Illinois since 2004. $100k to Democrats and Trial Lawyer PACS in total.
- Oswego Willy - Wednesday, Sep 24, 14 @ 9:23 am:
===After the deal closed in 2006, Baker said he sent himself an email to memorialize concerns he had raised about the legitimacy of the “disheveled” elderly man being placed as the sole shareholder buying the company.===
This is horrible for Rauner.
Emails… Emails…where did I keep hearing about emails and dates and importance of…emails.
Karma.
- Siriusly - Wednesday, Sep 24, 14 @ 9:25 am:
I have in the past bashed the Quinn campaign in comments here for their lack of discipline and lack of focus.
I am going to backtrack a bit and say that the two-pronged paid media and “free” media attack on Bruce’s nursing home issues is very solid and I think it will create major erosion for Rauner with suburban women and moderates. Also looks as if the Rauner campaign is getting punched in the head and doesn’t know how to respond . . .
- ILPundit - Wednesday, Sep 24, 14 @ 9:27 am:
I am rarely speechless….
- Norseman - Wednesday, Sep 24, 14 @ 9:28 am:
Paging Representative David Reis, we need your email expertise to check emails regarding this serious case.
- VanillaMan - Wednesday, Sep 24, 14 @ 9:32 am:
First - prove it.
We have a lot of blather in this campaign.
A lot of lies.
How about proving your charge first?
Cynicism is what happens when folks get tired of hearing candidate go negative against each other.
We don’t believe either.
- Carl Nyberg - Wednesday, Sep 24, 14 @ 9:35 am:
Rauner says he doesn’t believe anything improper was done.
Many people convicted of political & white collar crimes say the same thing.
Isn’t this the Rod Blagojevich & George Ryan defense?
- Shark Sandwich - Wednesday, Sep 24, 14 @ 9:35 am:
Well played, Norseman. Well played.
- wordslinger - Wednesday, Sep 24, 14 @ 9:36 am:
Bad stroke of luck for the Rauner crew that the Tribbies decided to staff the trial.
The deal stinks to high heaven. Coupled with the Georgia case, it paints a real ugly picture of GTCR business practices.
- Irked - Wednesday, Sep 24, 14 @ 9:36 am:
“His law firm (Levin & Perconti) has given $4k to Quinn this cycle. $36k to the Democratic Party of Illinois since 2004. $100k to Democrats and Trial Lawyer PACS in total.”
Oh wow. I just had the mental image of a frightened animal, rolling on its back and clawing helplessly at the air. I’ve had dogs with better self-defence instincts.
Quinn, a Democrat, happens to be using an expert at nursing home litigation. The fact that the expert happens to be a Democrat as well is the reason why the expert is willing to play such an active role in damaging Rauner’s reputation. Would Quinn really have been able to convince a Republican to do this? Or equally as interesting, is there a Republican expert with equivilent insight?
The answer is no. The Rauner response, where it stands now, gets an F.
- Yellow Dog Democrat - Wednesday, Sep 24, 14 @ 9:39 am:
Rauner has put himself in a trick bag.
He is no longer an officer of the company, so he can’t use the old “pending litigation” line.
But, he is addled with all of his companies legal mumbo jumbo because he was an officer at the time this all want down and he could eventually be a target.
As for Levin, he is one of the best nursing home abuse and neglect lawyers in the country.
If he shows up with photos to show reporters what these injuries typically look like…you will really be sick to your stomach.
He will also undoubtedly say something like “In all of my years of practice, the pattern of injuries and maltreatment by Rauner’s puppet company is the worst I have ever seen.”
- Roland the Headless Thompson Gunner - Wednesday, Sep 24, 14 @ 9:42 am:
Every day the word “nursing home” appears in a headline is a bad day for Brucie. To quote Ricky Ricardo, somebody got some ’splaining to do.
- the Patriot - Wednesday, Sep 24, 14 @ 9:50 am:
Quinn should let the paper run with this but stay away from it. There is no debate that the number 1 reason nursing homes are going under and people are being neglected is because the state under his watch has failed to make timely payments to these facilities.
Rauner should pounce. No one has caused more nursing home neglect than the democrats running this state. You can’t even argue that at this point.
- John A Logan - Wednesday, Sep 24, 14 @ 9:52 am:
The Rauner campaign is taking on water. Hillary nailed it “luckiest politician in America.”
- in the know - Wednesday, Sep 24, 14 @ 9:59 am:
$4k to PQ? that’s why nothing he says can be trusted? BR’s seat cushions have given more to Democrats than that! and if you use his math….$36k in a decade….to DPI, that’s $3,600 a year? and the $100k to his trade association (trial lawyers) over his career? Again laughable from the guy who’s buddy Ken Griffin has contributed more than 10 times that this YEAR! Team Rauner better up their game or they are toast. here’s a bit of free advice, use Steve Levin as an example of the need for tort reform….. or find a case against government owned nursing home and talk about bilking the tax payers….. or how about talking about PQ’s cuts to nursing home funding through Medicaid, the need for better funding of home health aides to keep people in their homes and out of the more expensive NH setting. Gesh!
- MrJM - Wednesday, Sep 24, 14 @ 10:01 am:
“the strange GTCR business deal that left elderly graphic artist Barry Saacks with control of an empty shell nursing home company”
Rauner’s choice for lieutenant governor is starting to make sense, i.e. he plans to run the state like one of his businesses and was looking for a mark that he could leave holding the bag.
– MrJM
- Bill White - Wednesday, Sep 24, 14 @ 10:08 am:
Evelyn Sanguinetti is to __________ as Barry Saacks is to __________.
- walker - Wednesday, Sep 24, 14 @ 10:17 am:
Pretty clever. Split the operating company into two pieces — one shell, with weak assets and a new “owner” to take on all the civil liabilities, and another to keep operating and producing profits for the old owners.
This is apparently how the great “risk takers” and “makers” at GTCR not only ensured high returns on the money they invested, but evasion of losses and accountability — at least as claimed in this case.
In addition, partners like Rauner still took fees, no matter the performance. Once the system is built, and investors like their/your reputation for returns, it’s a pretty easy way to continue to make millions.
To the point: which of the many skills Rauner has shown us so far will make him a good governor?
- Concerned - Wednesday, Sep 24, 14 @ 10:18 am:
“Evelyn Sanguinetti is to __________ as Barry Saacks is to __________”
Evelyn Sanguinette is to Bruce Rauner as Barry Saacks is to Bruce Rauner.
- Concerned - Wednesday, Sep 24, 14 @ 10:27 am:
Walker, you nailed the issue!
- Anonymous - Wednesday, Sep 24, 14 @ 10:36 am:
this kinda saacks the rauner run
- Concerned - Wednesday, Sep 24, 14 @ 10:47 am:
Rauner and GTCR’s business credo: “Profits for me, accountability for others.”
- JS Mill - Wednesday, Sep 24, 14 @ 11:13 am:
Nobody is clean. Quinn supports a bad early release program and NGI, Rauner is killing old people and sticking them with the liability. Probably worse for Rauner who wants to be the “reformer”.
- VanillaMan - Wednesday, Sep 24, 14 @ 11:21 am:
Probably worse for Rauner who wants to be the “reformer”.
No Quinn is the reformer.
Uh - wait…
No. He isn’t either, but said he was since the 1980s.
So, you either want the guy who claimed to be the reformer and isn’t over the past thirty years, or the guy who claims to be the reformer over the past thirty months…
- Tim Snopes - Wednesday, Sep 24, 14 @ 11:45 am:
It is high time GOP state leaders call on Rauner to step down and let one of the “Careerfellas” finish the race. What a disgrace.
- RNUG - Wednesday, Sep 24, 14 @ 11:49 am:
The way this is starting to play out for both candidates, maybe we should just ignore them and base our vote on the Lt Gov candidates since one of them may well end up running things when the smoke clears.
- DuPage Bard - Wednesday, Sep 24, 14 @ 11:54 am:
So is Rauner’s crew making fun of the contribution that Levin made? Seems to me they are actually mocking how little Levin spent. Because if they are trying to say PQ owes Levin something for $4k they really have to explain what the payback will be for Griffin.
- MrJM - Wednesday, Sep 24, 14 @ 12:03 pm:
“The way this is starting to play out for both candidates, maybe we should just ignore them and base our vote on the Lt Gov candidates”
Oy. https://capitolfax.com/2014/09/11/evelyn-sanguinetti-debate-snippets/
– MrJM
- truthteller - Wednesday, Sep 24, 14 @ 12:43 pm:
I’d rather have my kid bypassed for a job to make room for a Quinn patronage hire than have my parent die to help make a bigger profit for Rauner nine homes and his wine club.
Don’t think I am alone in that regard
- Jake From Elwood - Wednesday, Sep 24, 14 @ 1:07 pm:
Quinn or Rauner.
Great choices we have here in Illinois.
Kind of like going to a restaurant and having to choose between months-old boiled carp heads or antifreeze-infused foie gras.
I cannot stomach either option.