Connections declares bankruptcy amid fraud allegations

One of Delaware’s largest addiction and behavioral health service providers quietly filed for Chapter 11 bankruptcy on Monday, less than two weeks after the federal government slapped Connections community support programs with lawsuits claiming the he nonprofit defrauded the government of more than $ 4.5 million.

The bankruptcy filing comes less than two weeks after U.S. Attorney David Weiss filed two lawsuits against Connections, claiming the nonprofit had made false statements to receive some $ 4.5 million in abusive payments and had not adequately documented his distribution of narcotics.

Connections’ finances are such that once the organization pays its administrative expenses, it will have no more money to pay the thousands of unsecured creditors to whom it owes money, according to the bankruptcy filing. The nonprofit noted that it owed between 10,001 and 25,000 creditors, with its top 30 creditors owing nearly $ 30 million collectively.

Comments are closed.