Morning Read: Chartered Health Sues Its Owner, Jeffrey Thompson

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jesper skov, Shutterstock

D.C. Chartered Health Plan, the beleaguered company which was once the largest manager of health care for low-income D.C. residents, has filed suit against its former owner, Jeffrey Thompson, for allegedly stealing nearly $17 million from the taxpayer-funded health plan.

The suit, filed by the plan’s city-appointed receiver, “seeks to recover moneys due Chartered from its parent company and Jeffrey Thompson.”

Charted currently owes District health providers an estimated $60 million, and it only has assets to cover a small portion of that.

As explained by the Post’s Mike DeBonis, “the bulk of the $17 million represents Chartered money held in collateral by Cardinal Bank to secure a loan that the holding company took out in 2008 to settle a previous lawsuit that claimed Chartered and its affiliates had defrauded the city.”

The holding company, D.C. Healthcare Systems Inc., recently defaulted on the loan, leading Cardinal to seize $12 million, according to the suit, which the Post uploaded.

Read more about the suit here.


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