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Title covington businessman bay ingram's ownership in hospital targeted in legal battle | nola.com

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Description as cleanup crews rushed to save what they could of louisiana's coast following the 2010 oil spill, a group of investors on the north shore ran their own race: turning a vacant building into an upscale surgical hospital in three months, before a change in federal law would ruin their efforts. cypress pointe surgical hospital in hammond, which got off the ground with investments from doctors, had to be approved by inspectors by the end of the year, when physician-owned hospitals could no longer participate in medicare. missing the deadline would effectively kill the business model. covington businessman bay ingram was on a mission to turn a profit in both events that summer. shortly after his company, southeast recovery group, received $300,000 from oil giant bp in what federal prosecutors have now said was a scam, ingram wrote a check from his company to cover part of his personal investment in cypress pointe surgical hospital, according to court records filed in st. tammany parish last year. ingram, 50, has pleaded guilty to conspiracy to commit wire fraud in a scheme submitting fake bills to bp for helicopter flights in the oil spill cleanup. he is the only conspirator to...

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accuweather.com quick look change your current location » view full weather report search search nola.com account sign in close sign in to nola.com you are signed in as edit public profile sign out subscribe the times-picayune newsletters rss feeds mobile apps greater new orleans change region comments covington businessman bay ingram's ownership in hospital targeted in legal battle print email katherine sayre, nola.com | the times-picayune by katherine sayre, nola.com | the times-picayune the times-picayune email the author | follow on twitter on january 08, 2013 at 2:58 pm, updated january 08, 2013 at 11:47 pm comments the transfer was done to insulate the hospital and its investors, and was done transparently." -- cypress pointe spokesman. as cleanup crews rushed to save what they could of louisiana's coast following the 2010 oil spill, a group of investors on the north shore ran their own race: turning a vacant building into an upscale surgical hospital in three months, before a change in federal law would ruin their efforts. cypress pointe surgical hospital in hammond, which got off the ground with investments from doctors, had to be approved by inspectors by the end of the year, when physician-owned hospitals could no longer participate in medicare. missing the deadline would effectively kill the business model.covington businessman bay ingram was on a mission to turn a profit in both events that summer. shortly after his company, southeast recovery group, received $300,000 from oil giant bp in what federal prosecutors have now said was a scam, ingram wrote a check from his company to cover part of his personal investment in cypress pointe surgical hospital, according to court records filed in st. tammany parish last year.ingram, 50, has pleaded guilty to conspiracy to commit wire fraud in a scheme submitting fake bills to bp for helicopter flights in the oil spill cleanup. he is the only conspirator to be charged so far. his sentencing hearing is scheduled for feb. 20. he faces up to five years in prison. cypress pointe surgical hospital in hammond. grant therkildsen/the times-picayune the politically connected businessman's interests over the years have been wide-ranging. he has claimed $7 million in real estate holdings through his company, ingram investments. he helped pull doctors' hospital of slidell out of bankruptcy in 2011. he founded and later sold southern surgical hospital, also in slidell. in the past, he has owned interests in a video poker truck stop, the now-shuttered bimini bay's lounge in slidell and wgso radio on the north shore. but 2010 marked a key turning point for ingram, whether he knew it then or not. as his activities in the oil spill would later bring him into federal court, his dealings in cypress pointe surgical hospital, along with a close business partner, have come under scrutiny in civil court. ingram was one of four partners who oversaw a three-month rush to get the $35 million surgical specialty hospital fully developed and operating by december 31, 2010. at the time they took over in august 2010, the hospital had been partially built and left vacant after a previous attempt by doctors to develop it had gone into bankruptcy. bay ingram louisiana department of natural resources ingram, a contributor to numerous political campaigns, including gov. bobby jindal's, was appointed by jindal to the state mineral board in 2008. he resigned from that post on oct. 30 last year, three days before prosecutors filed a bill of information against him in u.s. district court in new orleans. james aldridge of mandeville, cypress pointe's former ceo and one of the investors, recently claimed in a lawsuit that from the beginning, the development of cypress pointe surgical hospital was a hotspot of fraudulent dealings. aldridge's suit alleges that he was forced to resign as ceo and ultimately kicked out of the partnership when he questioned some actions. the hospital responded by claiming aldridge was expelled for bad behavior, poor job performance and violating confidentiality under his contract. the legal battle is still pending in district court in st. tammany parish. the hospital asked a judge in a hearing last month to dismiss the case.aldridge, 38, has worked in leadership at two hospitals in alabama and mississippi and more recently, headed home health care for ochsner in new orleans, according to his resume filed in court. aldridge and his lawyer, edward gibson, declined to be interviewed. ingram also declined to comment.among other claims, aldridge says in the lawsuit that in march of 2012 -- after he had already been forced to resign as ceo -- ingram asked him and the other investment partners to sign off on transferring his share of the hospital to a trust for his family. he wanted to move his assets because he knew he was a target in a federal investigation over the oil spill, aldridge claimed in his lawsuit. ingram, in an october deposition, admitted as much. he said that it was in the best interest of the hospital to do so. aldridge refused to immediately agree to the transfer.nola.com/the times-picayune contacted cypress pointe's lawyer, ross lagarde, for comment. in response, spokesman james hartman answered questions in written form. "to be clear, mr. ingram requested the transfer of ownership to protect the hospital and its investors when federal law enforcement agencies began an investigation into southeast recovery group," the statement says. "indictment or conviction for wire fraud...is an offense that must be reported to the state department of health and hospitals when charged against someone associated with a state-licensed hospital. the transfer was done to insulate the hospital and its investors, and was done transparently. the u.s. attorney's office was made aware of that transfer, and the reasons for it."a spokeswoman for the u.s. attorney's office in new orleans declined to comment on whether notice was given.the louisiana department of health and hospitals released a statement that it is the department's policy to review a health care provider's license when it receives notice of an owner or manager being convicted of fraud. according to department records, ingram no longer had a share in cypress pointe surgical as of oct. 26, 2012, when the hospital's ownership disclosure was updated. ingram pleaded guilty in federal court on nov. 28."department of health and hospitals has no active investigation into this business," the department said. "however, the department is currently reviewing ownership information regarding this facility."cypress pointe surgical hospital sits just off interstate 12 on the outskirts of hammond, a tall sign advertising surgical procedures such as knee replacements to drivers-by. on its website, the hospital boasts of 6 digital operating rooms, 24 inpatient rooms, "the best and latest technology," and "a host of personal amenities -- from chef-prepared meals to whimsically folded towels."the building had sat empty and unfinished after a previous attempt to develop it by doctors had failed. in early 2010, healthcare facility developer kevin schneider brought together aldridge and ingram with the idea of launching a specialty hospital there again, according to court records. schneider has a background working as a consultant in development of medical practices and in the pharmaceutical industry, according to his resume filed in court.from there, ingram invited his business associate, new orleans lawyer william christopher beary, to perform legal work for the venture in exchange for becoming an equity partner, according to depositions. the partners organized the hospital's 24 doctors who invested as part-owners as well. according to his lawsuit, aldridge invested $240,000 for his share and was hired on as ceo as the project officially launched in august 2010.when president obama signed his health care overhaul in march 2010, a deadline was imposed that threatened the future of doctor-owned hospitals in the u.s. from that point, no new physician-owned hospitals could participate in medicare and medicaid, nor could any existing facilities expand. critics of doctor-owned, for-profit hospitals have argued that physicians with financial interests in a hospital are more likely to order unnecessary tests and procedures given the incentive to boost business. federal officials predicted millions of dollars would be saved by stamping out doctor-owned hospitals. but such ventures already underway could be grandfathered in by obtaining licenses by the end of the year.in court records, aldridge claims that he worked "non-stop to ensure the hospital met the legal requirement and deadline," but the other partners decided to merge with a previous doctor-owned company as a way around the law. "aldridge questioned both the efficacy and legality of the merger, as the previous venture had gone through bankruptcy and aldridge was not sure if the merger would satisfy the deadline requirements of the patient protection and affordable care act," according to aldridge's claims in court filings.the lawsuit also claims that doctors were offered varying amounts of shares in the hospital depending on how much revenue each doctor could potentially bring in, which aldridge contended violates federal law.despite any disagreements among aldridge and the other partners, the hospital opened in early december 2010 after three months of frenzied construction and hiring. in april 2011, aldridge was removed as ceo "for no apparent reason," the lawsuit says. he agreed to a termination agreement that reduced his share in the hospital but granted him $127,000 in consulting fees. by march 2012, aldridge had been expelled as a partner. that month, the hospital sought a restraining order against aldridge after he threatened to go public with his claims -- which the hospital insisted were untrue, according to court records. the hospital described aldridge's behavior as a "bizarre and aggressive retaliatory campaign of defamation and unauthorized disclosure of confidential hospital business."aldridge, in turn, counter-sued and laid out his view of how the partnership fell apart. many of his complaints were targeted at the hospital's chief lawyer, beary.beary's new orleans law firm, orrill, cordell & beary, performed legal work for cypress pointe surgical hospital and beary became an equity partner -- a conflict of interest that he disclosed to the partners, according to court records. records indicate that beary and ingram had a close professional relationship. he -- along with aldridge -- joined ingram in rescuing doctors' hospital of slidell from bankruptcy, and he served as ceo of wgso radio, which ingram had owned a share in. beary also represented ingram in two lawsuits against bp.according to federal investigators in ingram's criminal case stemming from the bp disaster, ingram acted as a middle man between a helicopter supplier, rotorcraft leasing co., and bp during the aftermath of the oil spill between june and november 2010. then-st. bernard parish sheriff jack stephens had asked bp to pay for a helicopter to help the sheriff's office and the state department of wildlife and fisheries do emergency work in the parish following the macondo blowout. while ingram's company, southeast recovery group, was initially paid for legitimate work, ingram billed bp 10 more times for $1.3 million in work that bp said was never authorized, according to the bill of information. federal prosecutors say ingram falsified bills, forged a signature on a doctored contract and offered fake flight logs, listing flights that were never taken and passengers that never rode on the helicopter. ingram went as far as creating a fake persona by email claiming to be a bp claims processor to convince the helicopter company that ingram had a legitimate agreement with bp. but before any federal investigation came to light, ingram continued to press bp for payment, even enlisting stephens to write the oil company a letter with 23 invoices attached, according to court records. ingram, represented by beary, filed a lawsuit in april 2011 against the company in federal court. the lawyer representing ingram in that case was beary. the lawsuit requested the full $1.3 million from bp along with 40 percent more for attorneys' fees. but in december, federal prosecutors intervened and requested a stay in the case against bp, given the ongoing criminal investigation into ingram. hartman, speaking on behalf of beary, said that beary was not aware of any fraud allegations until prosecutors stepped in, and there has been no further activity in the civil case.in may 2010, shortly after the deepwater horizon explosion, beary and ingram also pursued bp through a damages claim in federal court. beary's firm is listed on a website, cantfish.net, seeking plaintiffs to sue over the loss of recreational saltwater fishing in the gulf of mexico during the spill. ingram is listed as one of four named plaintiffs on the lawsuit.beary faced his own legal trouble in 2012, which aldridge's lawsuit pointed out. beary was arrested in the french quarter on aug. 17 on a charge of possession of cocaine. according to a police report, paramedics responded to a call on baronne street, where beary was found with a black eye and busted nose and chin. beary told paramedics that he didn't know how he got injured, according to the report. beary pulled his identification out of his back pocket when a clear plastic bag containing cocaine fell out and landed on the ambulance gurney, where beary was being treated, according to the report. he has pleaded not guilty to the charge.in his deposition in the cypress pointe lawsuit, ingram said that he invested $140,000 in the hospital real estate and $250,000 in the operations, along with personally guaranteeing a loan of $8 million or $9 million for an mri unit. during his involvement with the hospital, he said that he also conducted southeast recovery group business, including invoices for the company, in aldridge's office at the hospital. in the same deposition, ingram refused to answer questions about a helicopter that landed at the hospital. he said he knew how it got there, but declined to give any details.at least one of the doctors at cypress pointe has hinted at possible misdeeds among management. dr. vincent kidd, a urologist, has sued the hospital, claiming the managers misled the doctor-investors as to how managers would charge fees to the company. the managers are taking 5 percent of the total revenues, while doctors were led to believe the fees would be 5 percent of profits after operating expenses, according to kidd's lawsuit, which was filed in september in tangiphoa parish. "although kidd has not had access to all of the financial records of cypress pointe, upon information and belief, kidd alleges that management and its agents have also engaged in acts and conduct which would be considered intentional misconduct and/or gross mismanagement," the lawsuit says. schneider, meanwhile, has sued beary in east baton rouge parish district court. schneider alleges that beary misled and attempted to circumvent the other investors on routine business matters. schneider claims that he questioned the decision to forfeit aldridge's interest in the hospital after kicking him out. follow us twitter facebook linkedin google+ pinterest tumblr new orleans crime map by district find the latest reports near you nopd district maps of preliminary violent crime reports in new orleans special report family sentence louisiana's criminal justice system scars children, families and the community when parents are imprisoned follow continuing coverage » most read find local real estate jobs autos businesses --> find a job buy or sell a car find a place to live see what's for sale find a business view obituaries 2016 murder count 0 latest incident: 2016 map of n.o homicides active discussions about us about nola media group community rules advertise with us frequently asked questions contact us contact newsroom jobs at nola media group submit a correction the times-picayune subscribe tp electronic edition enewsletters get our apps & text alerts report a wet or missing paper make a payment, manage your account rss times-picayune store legal notices nola.com sections news sports entertainment opinions obituaries weather videos webcams/live! site map jobs autos real estate rentals classifieds local deals local businesses your regional news pages new orleans st. bernard east jefferson west bank northshore/st. tammany plaquemines river parishes baton rouge mobile mobile apps | mobile faq more on nola.com post a free classified ad sell your car sell/rent your home apartments and rentals sponsor content post a job from mardigras.com mardi gras news mardi gras parade schedule mardi gras events mardi gras history mardi gras photos & video follow us twitter | facebook | google+ | instagram registration on or use of this site constitutes acceptance of our user agreement and privacy policy © 2017 nola media group. all rights reserved (about us). the material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of nola media group. community rules apply to all content you upload or otherwise submit to this site. ad choices


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