Bankrupt hospital chain sues CEO over collapse that left thousands without access to emergency rooms
In new filings the hospital chain claims its founder and former chief executive Ralph de la Torre devised a scheme to plunder the company of hundreds of millions of dollars that directly led to its collapse.
The hospital chain alleges that de la Torre and his team of executives defrauded the company of $262 million and wasted a further $1.1 billion on buying up overpriced hospitals in Florida.
The complaint alleges that the catastrophic investments were made to fulfil de la Torre's 'personal desire to build a hospital empire,' a reckless move that involved overpaying about $200 million for the properties.
Steward, which is now being run by an independent administrator after filing for bankruptcy in 2024, is attempting to claw back some of the money from its former bosses to help pay off its debts.
De la Torre has become the poster boy for corporate greed rot at the center of the struggling healthcare system.
'Through their greed and bad faith misconduct, [these former insiders] operated Steward with the aim of enriching themselves at the expense of the Company, its creditors, and the patients and communities that Steward served,' the complaint states.
'These insiders pilfered Steward's assets for their own material gain, while leaving the Company and its hospitals perpetually undercapitalized and insolvent.'
The most recent filings also claim that de la Torre and other executives paid themselves a $111 million dividend in 2021, despite knowing that Steward was in trouble as early as 2016.
De la Torre founded Steward in Boston in 2010, growing it into the country's largest private for-profit hospital chain, the Boston Globe reported.
It rapidly bought up hospitals on a trajectory that became unsustainable, plunging it into dire financial straits.
It eventually filed for bankruptcy in May last year while operating 30 hospitals across eight states.
As it moves through the bankruptcy process Steward has closed two hospitals in Massachusetts - Carney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer - and sold off a further six.
Filings later revealed by The Wall Street Journal showed that after de la Torre took over majority ownership of the hospital chain in 2020, he received personal payments of at least $250 million over the next four years.
He went on to use the money to purchase a $7.2million 500-acre ranch in Waxahachie, Texas, and a 190-foot, $40 million yacht.
Further to this de la Torre was revealed to own a 11,108-square-foot mansion in Dallas, valued at more than $7 million.
Protests against the hospital closures occurred last summer
'He basically stole millions out of Steward on the backs of workers and patients and bought himself fancy yachts, mansions and now apparently lavish trips to Versailles,' Massachusetts Gov. Maura Healey said at the time of the bankruptcy announcement, referring to how the hospital owner was spotted in France watching Olympic equestrian events at Versailles.
'I hope he gets his just due and that federal investigators will come after him for his actions,' she said in a statement.
'I am disgusted by Ralph de la Torre,' she concluded.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
27 minutes ago
- Reuters
Union Pacific nearing agreement to buy Norfolk Southern Bloomberg reports
July 26 (Reuters) - Union Pacific (UNP.N), opens new tab, the largest U.S. railroad operator, could reach an agreement to acquire rival Norfolk Southern (NSC.N), opens new tab as soon as early next week, Bloomberg News reported on Friday, citing people familiar with the matter. Union Pacific had said on Thursday it is in advanced talks to acquire its rival, signaling that a deal to form a $200 billion coast-to-coast rail company could be close - and potentially trigger further consolidation among remaining freight rail giants. Union Pacific declined to comment, while Norfolk Southern did not immediately respond to a Reuters request for comment. The combination, which would be the largest-ever buyout in the sector, would create the first modern West-to-East single-line freight railroad in the United States, significantly affecting how goods from grains to chemicals to autos move across the country. The fact that talks are advancing has surprised many in the rail industry and Wall Street as the U.S. freight rail system already functions as two regional duopolies by point of origin. The talks show how thinking around antitrust issues has shifted under President Donald Trump's administration, with his executive orders aimed at removing anti-competitive barriers and opening the door to potential megamergers in the industry. If completed, the deal would combine Union Pacific's dominant position in the western two-thirds of the U.S. with Norfolk Southern's 19,500-mile network spanning 22 eastern states. Union Pacific is valued at approximately $138 billion, according to LSEG data. The company has been grappling with sluggish automotive volumes and volatile coal shipments as power producers shift to natural gas, which is shipped by pipeline. Norfolk Southern, which is worth about $63 billion, is emerging from a turbulent period that included the ouster of its former CEO amid ethics investigations, a high-profile boardroom clash with activist investor Ancora, and a costly train derailment that set the company back about $1.4 billion.
Daily Mail
27 minutes ago
- Daily Mail
FBI chief 'shocked to core' amid Epstein files scandal
By Embattled FBI deputy director Dan Bongino revealed he has discovered matters that have 'shocked me down to my core' during his time in office. Bongino shared a cryptic message to his social media in which he vowed to uncover 'the truth' amid mounting criticism of his handling of the Epstein files. He added: 'We cannot run a Republic like this. I'll never be the same after learning what I've learned. 'We are going to conduct these righteous and proper investigations by the book and in accordance with the law. We are going to get the answers WE ALL DESERVE. 'As with any investigation, I cannot predict where it will land, but I can promise you an honest and dignified effort at truth. Not 'my truth,' or 'your truth,' but THE TRUTH.' Bongino alluded in his statement to recent discoveries surrounding government corruption and weaponization. He did not provide a timeline for when the general public might learn about what he is talking about, adding that 'things are happening'. He failed to show up on one Friday after a DOJ memo was released that said Epstein had died by suicide and that no other people named in the files would be charged. It also said there was no 'Epstein client list'. The following Monday, officials were starting to squirm and feared that Bongino would be a no-show yet again, but he arrived in the office a few hours later than expected. It was reported at the time that Trump was furious that one of his hand-picked appointees would be so publicly against him. A source inside the DOJ told Daily Mail that Bongino was ready to stand down if Attorney General Pam Bondi didn't. The fallout of that memo continues, with the Wall Street Journal reporting that Bondi told Trump in May that his name appeared in the Epstein files. Bondi also allegedly acknowledged that the administration should withhold the files due to them containing images of child sexual abuse. The president associated with Epstein and British socialite Ghislaine Maxwell in the 1980s and 1990s. Maxwell was questioned this week by Deputy Attorney General Todd Blanche. She is serving 20 years behind bars for his involvement in Epstein's crimes. The 63-year-old made it clear earlier this month that she was willing to speak in front of Congress about the case. Trump has not been implicated in any crimes and just because a name appears in the files does not mean imply they were involved in Epstein's child sex trafficking. Many believe Maxwell appears to be angling for a pardon from President Donald Trump after she 'didn't hold back' during questioning. Trump refused to rule out invoking his presidential pardon powers for Maxwell saying: 'I'm allowed to do it, but it's something I haven't thought about.'
Daily Mail
27 minutes ago
- Daily Mail
California's minimum wage hike may have cost thousands of jobs
According to the economists behind the study, fast food employment in California dropped by 3.2 percent, while jobs in the same sector grew slightly across the rest of the U.S. 'Our median estimate translates into a loss of 18,000 jobs in California's fast–food sector relative to the counterfactual,' wrote researchers Jeffrey Clemens, Olivia Edwards, and Jonathan Meer. Before the law took effect, California's fast food industry was tracking the same employment trend as the rest of the country, the study found. But after AB 1228 was passed, the sector began to shrink. 'Following AB 1228's enactment, employment in the fast food sector in California fell substantially,' the paper states, citing declines 'even as employment in other sectors of the California economy tracked national trends'. Critics say the figures confirm what many feared: that a massive one–size–fits–all pay hike would push jobs out of reach for the workers it was meant to help. 'When it comes to central planning, history keeps the receipts: Wage controls never work,' wrote Heritage Foundation economist Rachel Greszler in a column reacting to the findings. 'That's because policymakers can set wage laws, but they can't outlaw the consequences.' She warned the law should serve as a wake–up call for other cities – especially Los Angeles, which recently voted to raise wages for hotel and airport workers to $30 an hour by 2028. 'The consequences of that wage hike on the fast–food industry should be a warning sign,' she said. The Wall Street Journal editorial board echoed that message, slamming politicians for 'magical thinking' around wage hikes. 'The Democratic Party's socialist nominee for New York mayor, Zohran Mamdani, has called for increasing the city's minimum wage to $30. Andrew Cuomo, his supposedly more moderate competitor, wants a $20 minimum,' the board wrote. 'These guys will never learn because they don't want to see the world as it really is.' But Governor Gavin Newsom's office has pushed back hard – questioning the integrity of the NBER paper and insisting California's wage law is working as intended. Tara Gallegos, Newsom's deputy director of communications, dismissed the study as politically motivated, telling Fox News Digital that it was 'linked to the Hoover Institution,' which she claimed had previously published 'false or misleading information' about the state's wage policies. She pointed to an October 2024 report in the San Francisco Chronicle, which said the early effects of AB 1228 'defy a lot of the doom–and–gloom predictions' made when the bill was signed. Gallegos also cited a February 2025 study by a UC Berkeley professor, which looked at fast food employment trends through December and found 'no negative effects.' 'Workers covered by the policy saw wage increases of 8 to 9 percent, with no negative wage or employment effects on non–covered workers,' she said. 'No negative effects on fast–food employment.' She added: 'The number of fast–food establishments grew faster in California than in the rest of the U.S.' As for prices, the Berkeley study claimed menu costs rose by only 1.5 percent – about six cents on a $4 hamburger. The NBER paper also looked at whether the law had a knock-on effect in full-service restaurants, which weren't subject to the $20 mandate but compete for the same workers. The authors found smaller but still negative employment effects – a median drop of 2.12 percent. And while critics were quick to blame the law for economic pain, the researchers warned against cherry-picking isolated data. They used placebo inference methods to compare California's job trends with other states – and in most cases, California showed the steepest employment drop.
