Prison Health Units, Insiders Sued Over Texas Two-Step Maneuver

Insiders and affiliates of defunct prison health-care company Tehum Care Services Inc. were sued for using a legal strategy called the Texas Two-Step to siphon valuable assets away from creditors while leaving liabilities in a shell company that would file for bankruptcy.

Tehum director Isaac Lefkowitz, several businesses he controls, and former management of Corizon Health Inc. helped to enact “Project Orange,” which shielded company assets from mounting liabilities stemming from hundreds of medical malpractice and patient neglect suits from prisoners, according to a complaint filed by two creditor trusts Monday in the US Bankruptcy Court for the Southern District ...