Hospital chain CEO takes the fifth amid accusations of mismanagement

The founder and CEO of Americore Health, which owns and operates hospitals in three states, is refusing to answer questions from creditors in his company's Chapter 11 bankruptcy case, according to the Ellwood City Ledger.

Americore and its affiliated hospitals filed for Chapter 11 bankruptcy in late December. During a deposition Feb. 13 before the official committee of unsecured creditors, Mr. White invoked his Fifth Amendment right to remain silent and avoid self-incrimination, according to the report.

The deposition was held to gather information for an upcoming hearing that could determine whether Mr. White is removed as CEO of Americore. The hearing was scheduled after U.S. Trustee Paul Randolph, whose office oversees bankruptcy cases, and creditors accused Mr. White of mismanaging the business and asked the court to remove Mr. White as Americore's leader. The U.S. Trustee's office and the official committee of creditors in Americore's bankruptcy case are also seeking access to Americore's financial information.

Mr. White, who is under criminal and civil investigation, may also be forced to find a new lawyer to represent Americore. The law firm that has represented the company since it filed for bankruptcy is petitioning the court to be released from representation of Americore. In its petition, the law firm cited "irreconcilable differences" with Mr. White, according to the Ellwood City Ledger.

More articles on legal and regulatory issues:
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