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Leaked email states Connections plans to sell much of business to pay off debts
Delaware News Journal
Leaked internal correspondence and public bankruptcy filings detail that Connections Community Support Programs, the state s largest provider of addiction and behavioral health services, plans to sell most of its business to pay its debts.
On Monday, the company quietly filed for Chapter 11 bankruptcy and began submitting a series of first day motions to ensure the nonprofit could continue operations unencumbered while also providing a framework for another business to purchase Connections.
Since then, Connections, which in recent years said every day it serves tens of thousands of impoverished Delaware residents suffering with addiction and/or mental illness and poverty, has said nothing publicly about the bankruptcy or how it will affect its current employees or clients.
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Del. Drug, Mental Health Provider Opens Ch. 11 For Sale
Law360 (April 20, 2021, 1:48 PM EDT) Facing triple-damage False Claims Act suits, inmate and patient damage claims and defaults on some of its more-than $50 million debt, Delaware s largest outpatient drug and mental health care provider sought Chapter 11 protection late Monday, aiming for a bankruptcy-shielded sale of the businesses.
The move by Connections Community Support Programs Inc. came days after the filing of the third in a series of lawsuits by Delaware and federal agencies alleging bogus billing practices and violations of the Controlled Substances Act.
Robert D. Katz, CCSP s chief restructuring officer and managing director of EisnerAmper LLP s financial advisory services group, said CCSP s services.
Since news broke of the federal lawsuits, Connections has not returned calls or emails seeking comment and clarity on what employees are doing to ensure improprieties do not continue. The nonprofit on Tuesday again declined to comment.
Connections also is seeking to seal some of its creditors contact information, specifically employee records the nonprofit says that if they were released publicly could cause privacy concerns or be used to locate survivors of domestic violence or stalking who have otherwise taken steps to conceal their whereabouts, according to one of three first day motions filed April 19.
Former Connections employees have been key to uncovering the nonprofit s improprieties. The lawsuits filed by Weiss, which were piggybacked by Delaware s Department of Justice, came from a whistleblower complaint. Other employees came forward in 2019, as detailed in a News Journal investigation.
Amid fraud allegations, Connections files for Ch. 11 bankruptcy Amanda Fries, Delaware News Journal
Headlines April 20, 2021
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One of Delaware s largest providers of addiction and behavioral health services quietly filed for Chapter 11 bankruptcy on Monday, less than two weeks after the federal government slapped Connections Community Support Programs with lawsuits saying the nonprofit defrauded the government out of more than $4.5 million.
Connections finances are such that once the organization pays its administrative expenses it will not have any money to pay the thousands of unsecured creditors it owes money to, according to the bankruptcy filing. The nonprofit noted it owes between 10,001 and 25,000 creditors, with its top 30 creditors owed nearly $30 million collectively.