Medical Practice Owner Hygea Ran Ponzi Scheme, Creditors Allege

Hygea Holdings Corp., the bankrupt owner of several physician practices and ancillary services, allegedly operated a Ponzi scheme and defrauded investors, a group of creditors says.

The committee of unsecured creditors Thursday asked the U.S. Bankruptcy Court for the District of Delaware to order Hygea to respond to its demands for more information. Doing so will allow the committee to investigate the alleged fraud and take possible actions to recover money for the bankruptcy estate, it said.

“Debtors appear to have engaged in a widespread Ponzi scheme consisting of numerous misrepresentations designed to fraudulently induce healthcare providers to sell their ...