Nursing Home Partners On The Hook For Partnership Debts
A federal judge refuses to dismiss claims against Coventry Health Center Associates, a dissolved limited partnership set up by a former nursing home executive.
The U.S. government is seeking more than $12 million from Antonio Giordano, his CEO, John Montecalvo, Pasquale Confreda, a general partner in Coventry Health Center Associates, and Coverntry Health Center Associates, the entity itself. The government maintains that the named defendants diverted millions of dollars from the nursing homes, allowing them to fall into debt, which is a violation of a Housing and Urban Development agreement.
Giordano and Confreda argued that because Coventry Health Center Associates is dissolved, it can no longer be held liable. Federal judge Mary Lisi ruled in May 2010 that the individual partners are liable for the partnership's debts under state law.
