Dark Money

The Texas Senator’s Son

LIT’s Creating Scrapbooks on Texas Senators to Show Why They Cannot Focus on the Criminal Fraud by Fellow Lawyers and Judges in Texas.

The Zaffirini Family Scrapbook

LIT’s Creating Scrapbooks on Texas Senators to Show Why They Cannot Focus on the Criminal Fraud by Fellow Lawyers and Judges in Texas. Bookmark for updates.

JAN 24, 2023

BP America Production Co. v. Zaffirini, 419 S.W.3d 485 (Tex. App. 2013)

“In BP’s original petition filed on May 7, 2010, BP sued Zaffirini, six other individuals,and Las Tinajas Minerals, Ltd. On June 4, 2010, Carlos M. Zaffirini, Sr. filed a pro se original answer, and the other Zaffirini Lessors filed an original answer that was signed by attorney Guadalupe Castillo, Zaffirini’s law practice partner.

About

I enjoy my work. I enjoy getting people to re-engage in the mission of health care.

NewLight Health Care specializes in rejuvenating hospitals, medical clinics and health care related facilities.

Our team of experts have years of operational excellence and are good at finding efficient creative solutions.

We understand that hospitals and clinics are more than just a business, they are the heart of the community.

New Light Health Care examines:

• Operations
• Staffing
• Revenue Generation
• Wages
• Recruitment
• Services
• Growth opportunities

We like to start with a general assessment, “kick the tires” so to speak.

NewLight Health Care recognizes that each organization has unique challenges that may require a new set of eyes to see the solution.

We care about our clients and want to help find the best ways to keep the doors open and quality services continuing.

About

Carlos Zaffirini is an attorney and entrepreneur who earned his BBA and JD from The University of Texas at Austin.

He is the CEO of AHCV (Adelanto HealthCare Ventures, L.L.C.), a healthcare finance consulting company with offices in Washington, D.C.; Austin; Nashville; Tallahassee; and Laredo.

The company focuses on reimbursement consulting for healthcare providers.

He also founded Zaffirini Law, a Texas-based law firm with national reach, and invests in multiple ventures ranging from healthcare to fintech.

This includes serving as Board Observer at Lithic.

A civic leader committed to public service through philanthropy, he prioritizes charitable interests in education and healthcare.

Through AHCV Carlos helped some of the most prestigious hospitals in the country access more than $6 billion of additional reimbursement. His expertise includes extensive experience in structuring complex reimbursement models, including Medicaid UPL, provider tax, Medicaid DSH, and directed payment programs.

He also works on complex regulatory issues with health systems, Uber Health, and managed care organizations.

Most notably, he developed over 40 provider taxes in multiple states.

Dedicated to improving funding for and delivery of healthcare across other states, Carlos is working with over 200 hospital nationally.

In a newer area, Carlos drafted statutes that allow ride-sharing organizations to participate in Medicaid programs in multiple states. These initiatives provide enhanced service in Non-Emergent Medical Transportation.

Carlos’ passion for public service is reflected in his philanthropy for organizations such as the Texas Access to Justice Foundation, South Texas Food Bank, Junior Achievement, and a variety of programs that enhance the quality of life of low-income Texans and their access to education, health, and justice.

A Guardian member of the Champion of Justice Society, he partnered with the UT Law Foundation to honor his parents by establishing the Carlos Sr. and Senator Judith Zaffirini Access to Justice Initiative, which pays for Texas bar exam review courses and exam fees for low-income law students committed to increasing access to justice for low-income Texans.

He honored his mother as the namesake of three endowed university scholarships, student loan repayment grants for teachers and healthcare workers, good works grants for civic organizations, and a patient suite at Dell Seton Medical Center.

His honors include being named the 2014 Outstanding Young Texas Ex, and UT Law’s 2021 Outstanding Young Alumnus.

The Marion County Commission unanimously approved an ordinance earlier this month that would create a non-ad valorem special assessment on county hospitals to help them cover Medicaid shortfalls.

But only three of the five hospitals in the county have signed onto the plan, threatening its implementation.

Ocala Regional Medical Center and West Marion Community Hospital are the the holdouts. Both are owned by HCA Healthcare and operate under the Ocala Health name.

The proposed assessment would allow the hospitals to receive federal funds from the Medicaid Directed Payment Program (MDPP) through the Local Provider Participation Fund (LPPF), a fund-matching program designed to offset the “Medicaid gap,” or the financial shortfall hospitals experience when they treat patients who are enrolled in the Medicaid program.

“Medicaid on average covers only 60% of the cost of the healthcare services provided by hospitals to Medicaid-eligible persons,” said Joe Johnson, AdventHealth Ocala CEO.

Johnson expressed his support for the proposed ordinance during the meeting.

“This program would allow us to continue our partnership with the county in providing care to those in with the greatest need,” he said.

Mike Tacke, CEO of The Vines Hospital also expressed his support during the meeting and detailed how the funds would benefit his hospital.

“One of the biggest challenges at The Vines is we try to keep up with the growing behavioral health demand needs of a growing community in Marion County…[we] try to attract licensed clinicians, nurses, psychiatrists to our community, and so having access to these matching funds would allow us to keep pace with and to compete with communities like Orlando and Gainesville, and out of state,” Tacke said.

He went on to note that “67% of our overhead at The Vines is in our staffing costs, and so that money would help us target that initiative.”

Encompass Health Rehabilitation Hospital of Ocala, sent a letter to the county stating they had no objections to the proposed ordinance.

Absent from the meeting, however, were representatives from Ocala Health.

In order to join the program, all county hospitals must agree to participate.

Commissioner Kathy Bryant proposed continuing the public hearing through their next meeting in order to hear from all health systems involved, however, Commission Chairman Jeff Gold pointed out the county made several attempts to contact the hospitals.

“They’ve chosen not to reply at this point. It is my read on this, to see what happens,” said Commissioner Michelle Stone.

The two Ocala Health hospitals can still decide to join the program as the legislative process continues. Ocala Health did not immediately respond to a request for comment regarding the program.

Bryant did express concern that Marion County might not get back what it puts in. The funds are collected from hospitals in participating counties and then sent to the Agency for Health Care Administration (AHCA), the state agency tasked with managing Florida’s Medicaid program.

AHCA then provides the money collected to the federal government, which in turn delivers matching funds to AHCA, which then disperses it back to the hospitals.

Bryant’s worry is that AHCA divides the state into eleven regions, and the funds collected are dispersed back throughout the AHCA regions they came from rather than from each individual county.

Carlos Zaffirini, the President of Adelanto HealthCare Ventures (AHCV), a consulting firm that collaborated with AdventHealth and Marion County on the proposed ordinance said “the math has to work” for the hospitals to be interested in taking part in the program. Hospitals would not support a program where they don’t see a benefit, he said.

While the MDPP has been around for some time nationally, it’s relatively new to Florida. Johnson pointed out during the meeting that AdventHealth hospitals in Texas have been using the program for some time and were pleased with the results.

Even if the two holdout hospital do eventually decide to participate, there is still a chance that Marion County hospitals do not receive matching funds this year. Multiple counties within an AHCA region must also agree to take part in the program.

Zaffirini said several counties within Maron’s region – Region 3 – are currently considering the same program. The counties in Region 3 include, Alachua, Bradford, Citrus, Columbia, Dixie, Gilchrist, Hamilton, Hernando, Lafayette, Lake, Levy, Putnam, Sumter, Suwannee, and Union

“It’s pretty common these days as a way to fund the safety net” he said.

The assessment would only apply to the five hospitals in the county, meaning no residents or local businesses would be subject to the assessment.

If all five hospitals eventually agree to join the program and agree to a uniform rate of assessment set by the county, the county would pass resolutions announcing the rate. The first assessment would come sometime in September or October.

More information on the DPP and LPPF can be found at floridataxwatch.org.

When Judy Zaffirini ran for the Texas Senate in 1986, her campaign materials described her as “articulate, organized, hard working.”

Those skills helped her become the first Hispanic woman to serve in the Texas Senate and as Texas Governor for a Day, and those are the skills she shares professionally through her consulting, writing, and educational programs in communication, customer service, marketing, diversity, and leadership.

Many Texans think of Judy as a senator and perhaps forget or don’t know that Dr. Judith Zaffirini is an award-winning communication specialist with more than 30 years of experience in public speaking at the local, state, and national levels, and with 13 years of teaching experience, including at junior college and university levels.

She brings that experience to Zaffirini Communications, her business through which she offers professional communication services, including consulting, writing, coaching, seminars, and workshops.

Because of her success as a businessperson and in promoting Junior Achievement, she was inducted into their Business Hall of Fame.

Dr. Zaffirini is still adding to the more than 530 awards she’s won for professional, civic, and public service work.

These include more than 90 awards that she and her staff won for communication projects, including speeches, brochures, and other print and audiovisual media.

The Texas Public Relations Association, for example, presented her with a “Best of Texas” award for her publication, 20 Dozen Tips for Better Communication and Leadership Skills, and the Texas Professional Communicators honored her with numerous statewide awards, including first place for several keynote speeches such as From Scholarship to Leadership;

If Judy Pappas Can Do It, Anybody Can!; and her speech at the inauguration of Senator Judith Zaffirini Elementary School.

An outstanding Texas leader, Dr. Zaffirini also excels in her professional capacity. Her expertise is reflected in her publications, including the Protocol Handbook and Priority Procedures for the City of Laredo. Her presentations are original and tailored for each audience-never canned.

They are different because of her unique combination of education and experience as an educator and in the political, professional, and business arenas. A passionate reader, her messages are research-based as well as informative and persuasive, empowering and motivating.

Dr. Zaffirini holds bachelor of science, master of arts, and PhD degrees from The University of Texas at Austin, each with a 3.9 grade-point average. She earned all three degrees while married and working her way through college.

She and Laredo Attorney Carlos Zaffirini Sr. have been married 41 years and have a 24-year-old son, Carlos Jr.

Those who have heard Dr. Zaffirini speak know she’s always prepared, always says the right thing, and never uses notes.

Many have wondered, “How does she do it?” She shows us as she effectively blends her educational expertise with her impressive “real world” experience.

More important, she’s a passionate champion of communication, especially in empowering us to interact more effectively in all of our arenas.

This is an opportunity to learn from a distinguished leader, educator, and award-winning communication specialist-and don’t call her senator!-Dr. Judith Zaffirini.

HOUSTON – (Sept. 30, 2014) – The Sen. Judith Zaffirini Endowed Scholarship Fund at Baylor College of Medicine has been established to provide need-based support for medical students from South Texas.

The scholarship was established by Carlos Zaffirini Jr., an Austin attorney and businessman, in recognition of his mother, Sen. Judith Zaffirini.

A ceremony was held at Baylor today to announce the scholarship and to recognize Sen. Zaffirini and Carlos Zaffirini for their commitment to Baylor College of Medicine and higher education in Texas.

Sen. Zaffirini of Laredo, who represents the 21st longtime champion of higher education. She served as co-chair of the Joint Oversight Committee on Higher Education Governance, Excellence and Transparency and three terms as chair of the Committee on Higher Education in the Texas Senate.

“Sen. Zaffirini has been an incredible supporter of Baylor and defender of higher education. She has always been on the side of better education and is truly one of the special people in the state of Texas working on behalf of higher education,”

said Dr. Paul Klotman, president, CEO and executive dean at Baylor College of Medicine.

“We are very grateful to Carlos for making this pledge in honor of his mother for scholarships for South Texas medical students.”

Klotman presented plaques commemorating the scholarship to both Carlos and Sen. Zaffirini.

“My mother was elected when I was four years old, and has fought with passion since then to make sure that young people have educational opportunities, and her passion has inspired me to establish this scholarship,” Carlos Zaffirini said.

“How special will it be if one of the students who receives it comes back to South Texas to change lives for the better in the border region.”

Sen. Zaffirini is the second-highest ranking Texas state senator and the highest ranking woman and Hispanic senator. Her district includes Bexar County and part of the Texas-Mexico border region.

“Baylor College of Medicine is a special institution that has changed the world through its research and patient care, and that’s why I have always been so passionately involved with Baylor,”

Sen. Zaffirini said.

“I believe very strongly that young people will continue to make a difference and will make the world a better place.”

Former Gov. Mark White also spoke about the Zaffirinis’ influence on higher education issues, noting that young people need the kind of scholarship support the new endowed fund will provide so they will have educational opportunities and then share their knowledge with the rest of society.

Klotman highlighted Baylor’s work in South Texas, including partnerships with six high schools to provide education to students interested in the health professions and the Premedical Honors College, a program of Baylor and the University of Texas-Pan American that offers joint admission to both institutions to accepted students with the goal of increasing access to medical education among South Texas students.

Dr. Melissa Ochoa-Perez is a graduate of the Premedical Honors College and now a psychiatrist in private practice in Houston. She spoke at today’s ceremony, saying that access to the program was the most pivotal part of her journey to become a physician.

“I want to thank the Zaffirini family for their support of students in South Texas. They’re offering more than just financial support, they are offering an opportunity,” she said.

Carlos Zaffirini also created a scholarship in his mother’s name at the University of Texas at Austin, their alma mater.

At the end of the day, access to affordable healthcare is among the most important public policy issues we face as a nation. It has been well documented that Texas has the highest rate of uninsured Americans in the nation, but this problem is especially illuminated when it comes to the South Texas Border Region. In fact,three of the top four Texas counties with the most uninsured residents per capita come from the border region.

If we want to create more opportunity in South Texas, we need to make access to affordable healthcare a priority. When children are healthy, they are better set up to succeed and take advantage of the educational opportunities that lead to long-term success and higher paying jobs. For adults, better access to healthcare means early detection and proactive treatment of health issues. Affordable healthcare can also help to boost Texas’ economy by preventing lost working hours and wages. We must ensure equal opportunities for all to reap the greatest benefits for everyone.

Another issue we must confront is the physician shortage we face in Texas. Without physicians, even those with insurance may struggle to find a provider accepting patients or be priced out of the healthcare market. As in other industries, the law of supply and demand affects healthcare as well – with fewer physicians and more demand for their services, healthcare costs can increase, physicians can be overwhelmed with the sheer demand for their services, and quality may suffer without a robust and affordable healthcare ecosystem in this important and vulnerable region.

As a healthcare executive and a concerned Texan, I’m not as interested in discussing the politics of healthcare reform, but rather focusing on solutions and ways to address our healthcare crisis within the context of the law. At Adelanto Healthcare Ventures, we have spearheaded innovative solutions for healthcare providers to help expand access to affordable healthcare. Through our efforts we have worked to strengthen the safety-net by saving and expanding hours at South Texas Safety-Net Clinics; we have helped a major medical school in South East Texas utilize funds more efficiently so that we can train more physicians; and, we have helped our communities reclaim federal tax funds that might otherwise have left the state. We did all of this without the need to promote an increase in taxes on consumers.

We must also focus on increasing access for patients that are the most vulnerable. Without identifying a solution for financing the costs of uncompensated care, the Texas safety-net system will be strangled. By embracing innovative solutions that work within our system, we can provide immediate relief to South Texans who are un- or under-insured, and in doing so create a strong foundation for public health, economic prosperity and the region’s future.

Carlos is an accomplished health care attorney who has used his deep knowledge of the regulatory environment to build Adelanto HealthCare Ventures (AHCV), LLC, a health care finance consulting company with offices in Washington D.C., Austin, Nashville, and Laredo.

AHCV focuses on reimbursement consulting for healthcare providers.

As the President and CEO of AHCV, Carlos has helped some of the largest and most prestigious hospitals in the country access more than $6 billion of additional reimbursement.

He has expertise and extensive experience in structuring complex Medicaid reimbursement models, including the following:

  • multiple non-governmental Medicaid Upper Payment Limit (UPL) programs,
  • Local Provider Participation Funds (LPPFs)/provider taxes,
  • Medicaid Disproportionate Share Hospital programs, and
  • Medicaid Managed Care Rate Enhancement Projects.

Carlos also works on complex regulatory issues with health systems, transportation providers, and managed care organizations.

Most notably, he created and implemented the concept of the LPPF in Texas.

Such initiatives generated more than $4 billion to help improve funding and delivery of care for the local healthcare safety-net system.

The LPPF concept is now recognized as a preferred Medicaid financing model in Texas, and several other states are considering adopting similar measures based on Texas’ success with this model.

To facilitate access to health care for patients who lack transportation for their medical visits, Carlos collaborates with the world’s largest Transportation Network Company (ride sharing) to develop innovative services that meet their needs.

This includes assistance in developing a new reimbursement structure for ride sharing companies that help poor patients seeking access to care.

 

 

 

 

 

 

Jamie has more than a decade of experience as a trial and appellate lawyer.

She began her career as a law clerk for U.S. District Judge Sam Sparks in the Western District of Texas and then went on to try cases, first at an AmLaw 100 firm (Fulbright & Jaworski LLP now Norton Rose Fulbright) and later as a solo attorney and in a litigation boutique setting.

Representative matters involving health care providers include the following:

  • managed care reimbursement disputes,
  • antitrust suit involving medical devices,
  • physician partnership dissolutions,
  • contract dispute over development of medical office building,
  • contract dispute over multiple hospital physician-recruitment agreements,
  • managed care provider bid contests, and
  • court challenges to ultra vires state regulations affecting medical providers.

In addition to her litigation experience, Jamie spent valuable time as in-house contracts counsel for a Fortune 100 company, and managed the negotiation of multi-million-dollar commercial agreements in several industries, including pharmaceuticals and medical devices.

Jamie Richards Whitney

 

 

 

 

 

 

 

 

 

Senior Counsel, Cleveland Terrazas

Jamie is from the US.

Jamie Whitney brings intellectual rigor, excellent judgment, and a positive attitude to representing clients in a wide variety of matters, including contracts, torts, and employment matters. Jamie has a keen sense of the law and is quickly able to size up a case and develop a coherent and cost-effective strategy to achieve the desired results.

Jamie is able to handle the most complex of disputes with care and efficiency. Jamie understands that success is defined by clients and their goals and not necessarily a victory in court. For this reason, Jamie understands and regularly counsels clients on litigation risks and has ample experience negotiating agreements with opposing counsel and parties.

Jamie is an honors graduate of The University of Texas School of Law, and prior to becoming Senior Counsel with Cleveland | Terrazas PLLC, she worked for 7 years at Fulbright & Jaworski LLP (now Norton Rose Fulbright) and as an in-house attorney for a multi-billion dollar corporation. Jamie has clerked for both Judge Sam Sparks and Judge Mark Lane of the Western District of Texas.

Arthrocare Corporation v. Innovatech Medical Resources L.P.

(1:11-cv-00639)

District Court, W.D. Texas, Judge Sam Sparks

JUL 26, 2011 | REPUBLISHED BY LIT: JAN 23, 2023

Ms. Whitney Clerked for U.S. District Judge Sam Sparks, just sayin’

Arthrocare Corporation

REPRESENTED BY

Jamie Richards Whitney
(512) 536-5298
Fax: (512) 536-4598

Fulbright & Jaworski LLP
600 Congress Ave.
Suite 2400
Austin, TX 78701

Former CEO of Arthrocare Corporation Sentenced to 20 Years in Prison for Role in $750 Million Securities Fraud Scheme

NOV 3, 2017 | REPUBLISHED BY LIT: JAN 23, 2023

The former chief executive officer of ArthroCare Corporation, a publicly traded medical device company based in Austin, Texas, was sentenced today to 240 months in prison for his role in orchestrating a fraud scheme that resulted in shareholder losses of over $750 million.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Richard L. Durbin Jr. of the Western District of Texas and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field office made the announcement.

Michael Baker, 58, of Austin, Texas, was sentenced by U.S. District Judge Sam Sparks of the Western District of Texas, who also ordered Baker five years of supervised release following his prison sentence and to pay a fine in the amount of $1 million and to forfeit $13.7 million.

At the sentencing hearing, the Court found that investors lost more than $750 million as a result of the fraud scheme.

On Aug. 18, after a two-week re-trial, Baker was convicted of one count of conspiracy to commit wire fraud and securities fraud, seven counts of wire fraud, two counts of securities fraud and two counts of making false statements.

Evidence at trial showed that, beginning in 2005 and continuing until 2009, Baker, along with his co-conspirators, masterminded and executed a scheme to artificially inflate sales and revenue through a series of end-of-quarter transactions involving several of ArthroCare’s distributors.

Baker, along with his co-conspirators, determined the type and amount of product to be shipped to distributors based on ArthroCare’s need to meet Wall Street analyst forecasts, rather than distributors’ actual orders.

Baker and others then caused ArthroCare to “park” millions of dollars’ worth of ArthroCare’s medical devices at its distributors at the end of each relevant quarter.

ArthroCare reported these shipments as sales in its quarterly and annual filings at the time of the shipment, enabling the company to meet or exceed internal and external earnings forecasts.

The trial evidence further showed that ArthroCare’s distributors agreed to accept shipment of millions of dollars of products in exchange for special conditions, including substantial, upfront cash commissions, extended payment terms and the ability to return products, allowing ArthroCare to falsely inflate revenue by tens of millions of dollars.

In the case of ArthroCare’s largest distributor, DiscoCare, Baker caused ArthroCare to acquire DiscoCare specifically to conceal from the investing public the nature and financial significance of ArthroCare’s relationship with DiscoCare.

In addition to falsely inflating ArthroCare’s revenue, Baker lied when he was deposed by the U.S. Securities and Exchange Commission in November 2009 about ArthroCare’s relationship with DiscoCare, the evidence showed.

Baker’s earlier conviction was overturned by the U.S. Court of Appeals for the Fifth Circuit, resulting in the retrial.

The sentence imposed on Baker today of 20 years imprisonment is identical to the sentence he received after his first trial.

Co-conspirators David Applegate and John Raffle, both former senior vice presidents of ArthroCare, pleaded guilty to multiple felonies in 2013 in connection with their participation in the scheme.

Co-conspirator Michael Gluk, former chief financial officer of ArthroCare, pleaded guilty to conspiracy to commit wire and securities fraud on June 14, in connection with his participation in the scheme.

On Aug. 29, 2014, Raffle was sentenced to 80 months in prison.

On Aug. 29, 2014, Applegate was sentenced to 60 months in prison.

Gluk’s sentencing is scheduled for Jan. 5, 2018.

This case was investigated by the FBI’s San Antonio Field Office.  The case is being prosecuted by Securities and Financial Fraud Unit Chief Benjamin D. Singer, Assistant Chief Henry P. Van Dyck and Trial Attorney Caitlin Cottingham of the Criminal Division’s Fraud Section.
Topic(s):
Financial Fraud
Component(s):
Criminal Division
Federal Bureau of Investigation (FBI)
Press Release Number:
17-1242
Updated November 3, 2017

HCA Healthcare and Serpe Andrews: Court 189 Lawsuit by Sorrels Law Assigned to New Judge Craft (2023)

Tamika Craft aka Tami Craft-Demming is a judge of the Texas 189th District Court. She assumed office on January 1, 2023.

Currytown Corruption in Texas: Investigating Dr. Guru Reddy’s US Healthcare Fraud and Indian Hospitals

Founding board member of HCA Kingwood Medical Center, Dr. Gurunath Thota Reddy aka Dr. Guru Reddy of Digestive and Liver Disease Consultants.

Bandit Texas Lawyer Dave Medearis Commits Fraud On the Court To Stop Foreclosure Auction

He fails to mention borrower and HCA Healthcare Doctor Shelley L Richter aka Shelly Leeds-Richter in Petition and Exhibits in court filings.

The Texas Senator’s Son
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

To Top