Senators unanimously handed a decision to carry Ralph de la Torre, the CEO of troubled hospital operator Steward Well being Care, in legal contempt of Congress on Wednesday.
De la Torre failed to seem at a listening to the place he was subpoenaed to testify on Capitol Hill earlier this month, and the Senate decision refers the matter to the Division of Justice for prosecution. It marks the primary time first time since 1971 that the Senate has held somebody in legal contempt.
“Dr. de la Torre shouldn’t be above the legislation,” Sen. Bernie Sanders, an Unbiased from Vermont, mentioned on the Senate ground forward of the vote. “If you happen to defy a congressional subpoena you’ll be held accountable irrespective of who you’re or how related it’s possible you’ll be.”
“Over the previous decade, Steward, led by its founder and CEO Dr. Ralph de la Torre and his company enablers looted hospitals throughout the nation for their very own revenue. And whereas they received wealthy, staff, sufferers and communities suffered,” mentioned Sen. Ed Markey, a Democrat from Massachusetts.
Earlier than declaring chapter earlier this 12 months, Steward owned greater than 30 hospitals throughout eight states. CBS Information beforehand discovered the corporate did not pay for life-saving provides at its amenities after de la Torre and personal fairness buyers he partnered with extracted a whole bunch of thousands and thousands of {dollars} out of the corporate.
Final month, the Dallas-based firm closed two Massachusetts hospitals, leaving about 1,200 staff jobless, in keeping with the state.
Whereas Steward’s hospitals struggled, CBS Information discovered proof of lavish spending by de la Torre, together with the acquisition of a $40 million yacht in 2021, a $7 million Texas horse ranch in 2022, and two company jets that senators have valued at $95 million.
The contempt decision comes after senators spent months making an attempt to get de la Torre to publicly reply questions on his administration of the corporate. De la Torre had been subpoenaed to testify on Sept. 12 in entrance of a Senate committee investigating the chapter, however didn’t present up.
An legal professional for de la Torre beforehand requested the senators to postpone his consumer’s testimony till after Steward’s chapter proceedings are resolved. Final week, because the committee was weighing contempt resolutions, de la Torre sought to invoke his Fifth Modification proper to not testify.
In a letter, de la Torre’s legal professional wrote that lawmakers “sought to border Dr. de la Torre as a legal scapegoat for the systemic failures in Massachusetts’ well being care system.”
Along with being offered with the legal contempt referral in opposition to de la Torre, the Division of Justice has opened a separate legal probe into Steward. A federal grand jury in Boston is inspecting the compensation, spending and journey of the corporate’s prime executives, together with de la Torre, an individual acquainted with the matter instructed CBS Information.
By way of a spokesperson, de la Torre has denied wrongdoing.
“Dr. de la Torre did every little thing in his energy to assist Steward Well being Care overcome quite a few trade headwinds and challenges, together with personally buying essential gear and provides with a purpose to deal with the wants of sufferers and personally guaranteeing loans for the corporate together with his property,” the spokesperson mentioned in an announcement.