A Florida brain-injury treatment center, accused of abusing and neglecting patients, has filed for Chapter 11 bankruptcy protection, according to Bloomberg News.
The Florida Institute of Neurologic Rehabilitation (FINR) and three sister companies filed papers with the U.S. Bankruptcy Court in Tampa on Friday. Bloomberg News said that according to the filings, FINR owes from $3 million to $30 million to anywhere from 103 to 346 creditors, but yet lists only $150,000 in assets.
FINR, based in Wauchula, has been under fire for horrendous allegations about its treatment, or mistreatment, of patients. After Bloomberg News did a story about what it called “a history of violence” at FINR, in August Florida officials told the center to transfer 50 patients to other facilities. But FINR has challenged that director, according to Bloomberg News.
For its investigative story, Bloomberg got a hold of state reports regarding alleged abuses at FINR.
“Caregivers beat patients and goaded them to fight each other and fondle female employees,” according to Bloomberg.
On the same day that FINR filed for bankruptcy protection, it was sued by Regions Financial Corp. The bank claimed that FINR had defaulted on $31 million in real-estate-related loan, Bloomberg News reported.
The lawsuit, according to Bloomberg News, also charged that patients at FINR were at risk “because of financial problems and mismanagement.”