News Summary

A federal judge halted the auction of CARD’s assets amid ongoing legal battles regarding fraudulent medical practices tied to asbestos-related claims.

Judicial Ruling Pauses Auction of CARD Assets Amid Legal Turmoil

In a stunning turn of events, the Lincoln County Sheriff’s Office has been ordered by a federal judge to halt the auction of assets seized from the controversial Center for Asbestos Related Disease (CARD). Originally scheduled for July 2, the auction’s suspension follows a convoluted and ongoing legal battle over claims of fraudulent medical practices that have thrust CARD into the spotlight.

The $3.1 million judgment awarded to BNSF Railway against CARD stems from a 2023 federal court decision where a jury found that CARD had submitted 337 false claims to the federal government. Reports suggest that CARD falsely certified patients for Medicare coverage related to asbestos-related diseases without obtaining the necessary medical confirmations. BNSF Railway, partially culpable for the asbestos contamination in Libby, launched the lawsuit on behalf of the federal government when the latter opted not to pursue the case.

The implications of this ruling are significant, as proceeds from the anticipated auction were designated to cover the judgment owed to BNSF Railway. Just months ago, CARD’s clinic shuttered its doors following the seizure of its property, office equipment, and other assets by the Sheriff’s Office, marking a dramatic decline for an institution long entangled in controversy.

The judicial rebuke came from U.S. District Court Judge Dana Christensen, who ordered the auction pausing until pending motions are resolved and a debtor’s examination is completed. During a recent court hearing, attorneys representing both CARD and the federal government contended that certain assets belonging to the clinic were procured with federal grant funds, thus warranting protection. On the other hand, BNSF Railway emphasized the urgency of enforcing the judgment to recover lost funds.

With updates expected as the court deliberates, the fate of CARD’s assets hangs in the balance, raising questions about the future of both the clinic and the myriad patients it claimed to serve in the asbestos-riddled Libby area.

Legal Challenges Surround Lincoln County Port Authority

Amid rampant controversy, former Libby businessman Daniel Torgison has initiated a lawsuit against Lincoln County, accusing it of failing to adhere to state laws governing public notices and meetings. Torgison is seeking an injunction to prevent the county from pushing forward with land sales tied to the Lincoln County Port Authority.

The lawsuit, which has been filed against both the Port Authority and the Lincoln County Commissioners, stems from allegations of improper conduct surrounding land sales, particularly one eyed by Thompson Contracting, Inc. Torgison’s legal representation has urged that the Port Authority’s actions are not only questionable but also lack transparency as they have allegedly ignored open meeting law statutes crucial for public participation.

With the court hearing initially set for June 2, District Judge John Larson will require the county and the Port Authority to justify why a Temporary Injunctive Order should not be issued. Torgison’s claims are underscored by concerns that the Port Authority has been conducting transactions behind closed doors, citing undisclosed dealings with Noble Investment Properties, Inc.

Of particular note is the Port Authority’s questionable sale of 185 acres of taxpayer-owned land to Noble Investment Properties at a price remarkably below its market value. The implications of such a transaction have raised eyebrows among competing local businesses, who are voicing concerns about favoritism. This situation underscores a broader issue of accountability and transparency in public dealings.

Upcoming Sheriff’s Office Auction of Unrelated Assets