On Jan. 19, Tulare Local Healthcare District, which oversees tax funding for the hospital, announced it had settled its claims against former attorney Bruce Greene and his firm, Cleveland-based BakerHostetler, for $3 million.
“This is almost the total amount paid to the firm during its tenure in Tulare, which is appropriate when a clear conflict of interest existed,” Board President Kevin Northcraft said in a released statement.
HealthCare Conglomerate Associates (HCCA), the firm hired to manage the Tulare hospital in 2014, hired Greene on Dec. 2, 2014 to serve as legal counsel for the hospital district. He, along with BakerHostetler, represented the district as legal counsel through Sept. 26, 2017, with legal fees totaling $3.3 million, according to a declaration filed by the district’s controller. During that time, Greene also served as attorney for HCCA and its CEO Yorai “Benny” Benzeevi.
The hospital district filed the lawsuit on April 24, 2019, suing Greene and BakerHostetler LLP, for breach of fiduciary duty, fraud, professional negligence and breach of contract. Greene’s alleged misconduct began a year after he was hired on May 4, 2016, when he filed a lawsuit against Dr. Abraham Betre on behalf of the district, but for the benefit of Benzeevi, even though the district was not mentioned in the lawsuit. The lawsuit was dismissed by the court on Sept. 26, 2016, which Greene appealed on Nov. 23, 2016 and which Benzeevi paid the $78,000 appellate bond with district funds, which the district lawsuit says constitutes a breach of fiduciary duty.
In June 2017, when the hospital district could not pay its bills, which included $500,000 in delinquent legal fees owed to BakerHostetler for Greene’s time, Greene drafted board Resolution 852 giving HCCA “absolute” authority to borrow up to $22 million on behalf of the district. This was also considered a breach of fiduciary duty.
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