- The Washington Times - Sunday, May 28, 2006

A federal judge has reopened the personal bankruptcy case of a top executive for a District-based mental-health organization after authorities said a raid uncovered records showing more than $800,000 in a Jamaican bank.

Ricardo F. Henry, the chief executive officer of Insight Therapeutic Services, was indicted in March on federal charges that he submitted hundreds of thousands of dollars in phony bills to the District’s Medicaid program. He pleaded not guilty and rejected a plea offer.

Mr. Henry declared personal bankruptcy last year, and his debts were discharged in January on the grounds that he had no assets to pay off creditors.

However, U.S. Bankruptcy Judge S. Martin Teel Jr. reopened the case May 10, days after a bankruptcy trustee said the raid of Mr. Henry’s residence by federal authorities investigating his Medicaid billing practices uncovered assets not listed on Mr. Henry’s bankruptcy petition.

Excluding assets from a petition prevents creditors from receiving payment. Penalties for making a false statement on the petition can result in fines of up to $500,000 and five years in prison.

Bankruptcy trustee Wendell W. Webster said federal authorities found a Porsche, six firearms, $9,000 in cash, $10,000 in savings bonds and a passbook in Mr. Henry’s name at the National Commercial Bank of Jamaica. These items were not reported in Mr. Henry’s bankruptcy petition.

The bank passbook showed a balance of $827,137, “presumably in Jamaican dollars,” Mr. Webster said.

Mr. Henry’s bankruptcy attorney and criminal defense attorney did not return phone calls. Mr. Henry earlier this month rejected a plea offer by prosecutors, court records show.

It is not clear whether the deal included prison time. A U.S. attorney’s office spokesman said Friday that the agency’s policy is not to comment on plea offers or plea negotiations unless a deal is approved.

Authorities have seized the Porsche, but Mr. Webster wrote in a recent bankruptcy filing that the U.S. attorney’s office has not seized funds from the Jamaican bank account.

Documents in the criminal case show that an auditor for the U.S. attorney’s office found that about 80 percent of the hundreds of Medicaid claims submitted by Mr. Henry from 1999 to 2002 were false. Prosecutors also say Mr. Henry lied about having a doctorate degree.

Mr. Henry received about $500,000 from the city’s Medicaid program in 2000 and 2001, prosecutors said.

In his bankruptcy petition, Mr. Henry last year reported that he had less than $20,000 in total assets, the most valuable of which was a 1999 Chevrolet Tracker.

He also stated that his gross income for 2003 was $31,600. He reported total earnings of $9,000 for 2004 and a total debt of $153,824.

Mr. Henry listed his occupation as unemployed and valued his stock in Insight Therapeutic at $1.

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