White-Collar Crime

Lawyer and Ex-Client Charged in Perjury and Obstruction Case re Failed Hospital and Offshore Trust

An Indiana lawyer and his former client have been federally indicted in Chicago in a perjury and obstruction case related to the demise of an Illinois hospital in which both formerly had an ownership interest.

Attorney Frederick M. Cuppy and Peter G. Rogan are accused of standing in the way of collection efforts concerning $188 million in proceeds from the closure of Edgewater Hospital, the Chicago Tribune reports.

Both are accused of being less than forthcoming in depositions concerning the operations of an offshore trust from which Rogan and his wife allegedly were paid millions.

Meanwhile, a bank that holds a judgment for $124 million against Rogan concerning the hospital’s financing and the United States government—which obtained a separate $64 million judgment concerning alleged hospital-related health care kickbacks prohibited by federal Medicare and Medicaid rules—have been seeking to collect.

Rogan formerly lived in Indiana and established the offshore trust, with Cuppy’s help, in the late 1990s, according to the indictment, which was unsealed this week.

Cuppy was arrested in Florida on Monday and at last report was still being held there pending further proceedings in the Northern District of Illinois case, according to the Northwest Indiana Times. Rogan is in Canada where he previously posted bond in another matter and remains free.

A FBI press release provides additional details about the case.

A AssetProtectionBlog.com links to a 2008 opinion in the Northern District of Illinois concerning earlier collection efforts related to the trust.

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