UPDATED: HCCA Filed Deed Against Evolutions Before Hospital Filed Chapter 9

Healthcare Conglomerate Associates (HCCA) filed a Deed of Trust against Evolutions Fitness & Wellness Center in Tulare one day before the Tulare Local Healthcare District, the legal entity which owns the gym, filed bankruptcy.

The deed was filed September 28, the same day that the hospital management company told its employees it could not immediately make its payroll obligations or continue to fund Tulare Regional Medical Center (TRMC).

Mark Levinson, an attorney for HCCA, stated in a bankruptcy court hearing Thursday that the company had, indeed, filed a deed against some of the hospital’s property.

“There is one, but there’s a story,” Levinson said.

That story is that the deed, issued against Evolutions and the land adjacent to it, backs promissory notes issued to the company under the Management Services Agreement, the contract between HCCA and the Tulare Local Healthcare District. The district is the legal entity which owns both TRMC and Evolutions.

The Deed

Filed as a “short form deed of trust and assignment of rents” on September 28 — and dated September 27 — the deed assigns Chicago Title Company as a trustee.

According to the document, the deed was taken out to secure:

  • Payment “of the indebtedness evidenced by those certain Promissory Notes dated as of 7/31/2015, 7/31/2016; 12/21/2016, 12/28/2016, 12/29/2016, 12/30/2016, 12/30/2016 B, 3/31/2017, 7/21/2017, and 7/31/2017,”
  • Payment “of such further sums as the then record owner of said property hereafter may borrow from [HCCA], when evidenced by another note (or notes) reciting it is so secured.”

The only signature on the deed was that of Dr. Benny Benzeevi, signed as the CEO of the Tulare Local Healthcare District on September 22.

In a lawsuit filed in Los Angeles County on September 15 — before the district filed bankruptcy, and before the deed was placed on the property — attorneys for HCCA claimed that the hospital district had not made any payments against the promissory notes.

“As provided for in these notes, HCCA has made demand for payment of the principal of the loans,” the filing reads. “The District has failed to make payment of these notes in whole or in part.”

Promissory Notes

The ten notes total $10,233,950.05 in loans made by the company to the healthcare district.

Under the agreement, the company is allowed to unilaterally make interest-bearing loans to the district at its discretion, if the district isn’t able to repay HCCA for its expenditures on behalf of the district.

“Manager shall have the right, but not the obligation, in its sole and absolute discretion, to advance funds or agree to undertake to advance funds to any Person, as a loan to the District and to meet the shortfall caused by the District’s failure,” the agreement reads.

At each point a promissory note was issued under the terms of the contract, the district would have been approached by HCCA with a “Request for Funds” and a deadline for an amount of money to be provided to HCCA.

The company is also allowed to “execute” promissory notes to the district, effectively able to request money in one hand and lend from the district, to itself, in the other.

It’s also allowed, under the contract, power of attorney to “prepare and execute” security instruments to “perfect and continue its security interest” on those loans, giving it the legal authority to unilaterally issue the deed of trust.

A Public Records Act request by the Visalia Times-Delta showed numerous instances where the only signatures on the documents were those of Benzeevi, the CEO of HCCA.

At least one, dated December 21, 2016, and provided by Benzeevi in legal filings but either not made available or not posted by the Times-Delta, shows a note from Dr. Parmod Kumar.

“The District is unable to advance the funds at this time,” it reads.

Tax Liens

In the process of researching this article, the Voice found multiple tax liens against for unpaid property taxes on the district’s Earlimart clinic.

Under California law, healthcare districts are tax exempt on property they own within their district.

The Earlimart clinic, however, is located inside the territory of the North Kern/South Tulare Local Healthcare District — not Tulare’s.

The district may owe up to $10,746.56 in delinquent property taxes on the Earlimart property, according to liens filed against the hospital in May by the Tulare County Tax Collector’s office.

The amount is spread across three different liens, all filed against the district and recorded on May 16, 2017.

Additionally, the State of California’s Employment Development Department filed a $11,176.73 tax lien against Healthcare Conglomerate Associates directly on October 2.

Roadblock to Future Financing

The existence of such a deed on the Evolutions building could complicate the process of receiving interim financing to continue the hospital’s operations under a new operator.

HCCA had previously entertained the idea of using the Evolutions building to finance loans against the hospital, receiving information from two companies to do so.

It had engaged in discussions with two companies: MedEquities Realty Trust and Leaving Innovations.

The MedEquities proposal would have provided “an immediate combined $20,000,000 capital funding,” including a $12m “acquisition/leaseback” of Evolutions.

The Leasing Innovations loan would have provided $7m in funding and been secured by a Deed of Trust against Evolutions similar to the one that HCCA took out.

The hospital district’s post-HCCA turnaround plan would likely have used Evolutions and its adjacent land as collateral towards a loan.

The plan, submitted in court filings, stated that the district, in partnership with Community Medical Centers and Sante Health, would use “unencumbered buildings and land as collateral for an initial working capital loan with [Community.]”

Until the Healthcare Conglomerate Associates deed was filed, Evolutions was one of the district’s only pieces of unencumbered property.

In Depth: Tulare Regional Medical Center

45 thoughts on “UPDATED: HCCA Filed Deed Against Evolutions Before Hospital Filed Chapter 9

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  1. >> The only signature on the deed was that of Dr. Benny Benzeevi, signed as the CEO of the Tulare Local Healthcare District on September 22.

    If he Benny the thief signed as CEO of the DISTRICT,

    1- it gets nullified
    2- he committed fraud, misrepresenting and selling a property not owned by him

    ======
    Could it be possible that Dr Parmod Kumar put this signature recently, after the fact?
    He did not put date, he just wrote 12.2016
    There is no official stamp
    It was not included in board proceedings.
    Why his signature, why not board president’s?
    ===========
    It is all too common that when we lie, we risk getting caught and then we make another lies to defend the first lie and then more lies to defend the second layer of lies and so on and so on …. until we have woven a web of lies and often we find ourselves trapped in that very web.

    That is when people start making mistakes. THIS is I think where Benny & Kumar currently are.
    *
    *
    The day DA comes knocking on Shamie Bell’s door, it will all start unraveling very fast.

  2. I am going to send a campaign contribution check to our current DA Ward’s opponent for next election and demand him to publicly announce investigation of Tulare hospital financials since the day 85 million bond measure passed in 2007.

    I would suggest to him that a good place to start will be the weakest link – that is Shamie Bell

  3. It now appears that Benny’s ultimate goal is to get as many millions of dollars as possible against the Evolutions property, and pocket the money as “management fee”.
    He is a brilliant criminal , he and his lawyers have every angle covered.

  4. Dr Parmod Kumar & Benny the thief have taught us that Monay talks, bull$h!t walks.

    We should pool together money and talk to the DA candidates. Whoever promises to enforce law of land will get that money as campaign contribution.

    The current DA was bought by the Israeli mafia. He pretends that he is doing something – like filing a motion against HCCA but deliberately makes gross mistakes. So, his friends dont get hurt and he gets to say he is working.

  5. This is just unbelievable. Dr. Benzeevi was presenting how wonderful the hospital was doing since HCCA came in. Never mentioned they had to loan money and then Dr. Kumar signoffs on a promissory note in December, a month that had no board meeting. Was the board chair even aware.

    Kumar of course will make it seem like it was all for the good of the District. Seems like a conflict since the District pays both he and his wife. I wonder if they were part of the doctors that weren’t paid or did their checks arrive timely.

    • My head spins when I look back to this previous board and all the conflicts of interest every single one of those people had . Each one had something to gain with being on the hospital board and Kumar the most. Benny weenie doesn’t seem to be afraid of any consequences he just keeps digging himself deeper and deeper this is not a normal person we are dealing with this guy has a fine tuned criminal mind but they all slip up sometime. be careful Kumar he is so much smarter than you think you are .

  6. Anybody who knows Benny, knows he is not especially smart. He is a classic shylock schooled by his brother Iddo who is far more skilled.

  7. Benny will have all of the TDH assets tied up in liens and legal encumbrances which makes it extra complicated for anyone else who legitimately wants to come in and offer a loan to the district which will not have sufficient collateral to provide. Who would want to throw good money after bad ?

  8. Had a feeling that the longer this was drawn out the more illegal and devious stuff would be done. The night of the meeting at the church (29th) someone stated he had taken a loan out using those two properties as collateral. Now we know how he was going to make that happen. Disgusting human beings all of them…..Benny the Crook and those idiot past board members! He isn’t very smart but those guys served this up to him on a silver platter!

  9. Just read very amusing headline on Visalia Times Delta. Benzeevi claims that the motive behind trying to get rid of HCCA rests on the fact that he (Benzeevi) is Jewish. Wait editor! Im just describing the front page of the VTD. TDHC is being accused of anti semitism! Well if that dont beat all!

  10. Benny and Kumar team up and scheme to steal public property and make a lotta money. What a shocking revelation. Both are con men, Kumar is snake oil salesman. They are mutually convenient. White collar crime is successful because the perpetrators are always in a position of respectability and trust. Both of them are doctors. The rest of the doctors at TRMC who quit the staff abandoned them long ago, I’m sure they knew way more than the public. A few doctors who stayed on are still with them, they are highly suspect.

    • What you’re saying goes way back to previous boards. When Kumar was chair he got what he wanted. When Kamboj was chair he got what he wanted most of the time. 3-2 with Kumar and Torres being on the outs.
      All the right stuff was set up at the end of 2012 after the election. Bell got seated as chair and Kumar got everything that he wanted. Stop the audit (because we can’t see what happened to that bond money) fire attorneys. Then 8 months later the hospital is in bad shape. Benzeevi is already running the ER. So we look for partners. Benzeevi gets the board to listen to him, after the closing date. In house pretty much to go with Benzeevi. No Audit needed? Kumar gets what he wants.
      All further votes throughout Bells term are 5-0. Kumar gets what he wants.
      Then there’s the MEC disaster to top it off. (Which was actually in the HCCA contract to be given the authority to change the bylaws). Did you know Benzeevi was under review same time Kumar was? Remember Benzeevi had his attorney write up the HCCA contract. Was this all pay back?

  11. People of Tulare so sorry for the peope

    that have invaded your town . Yu are nice folks and I know some of yu and yu deserve so much better.
    God bless yu all.

  12. Benzeevi and his Attorneys are holding an entire population hostage. He will not be satisfied until he has sold every thing owned by TRMC and pocketed the money. Thanks to our DA and our legal system, apparently he can do whatever he wants.

  13. Benzeevi and Kumar have always covered each other’s asses…….Even in the MEC case…I hope the judge asks for proof of Kumar’s anger management and book keeping classes….he little BS story of, ‘they lost my form, they didn’t notify him….oh Dr Kumar we are sorry we messed up’.
    This still doesn’t answer why HCCA has not been paying the bills when they are due. $800,000 to pay for drugs………SCE wants their money…..all those other vendors aren’t paid. What about the outsourced billing? He can’t even make payroll!
    How the hell is he getting away with this?

  14. All the lies are starting to surface! Will they even be able to be prosecuted, it this legal??? As an employee I’ve been trying to hold tight because I love our TRMC family of employees, but with this news there may not be a light at the end of the tunnel– is it time to cut and run??

  15. Well $10 million in assets that can at least pay the employees. HCCAs assets are the ones used to pay its employees after all.

  16. I am wondering if any employee(s) who have knowledge of all the illegal happenings at the hospital fail to speak out either publicly or privately, can they be tried as accomplices?

  17. Seems like who assisted the most in watching the money disappear over time is the controller Delbert. Who knows what was kept hidden by others.

    • Yes!!!!! he is a key player from way back hope he does the right thing and voluntarily speaks up before he is subpoenaed to do so under oath. Delbert these guys will throw you under the bus ….. there is no loyalty amount thieves.

      • Delbert yu will take all the blame. Sorry to say you should have run. That cfo can organize cats. Too late yu are in big trouble

  18. They ought to be talking with the management who runs personnel, lab, xray,pharmacy nursing. Couldn’t be too many of them. They know what they’ve been told to do and they will be subpena’d one would think. Wonder if they been getting paid…they ain’t working for love of the TRMC family.

    • I know many people that currently work at HCCA got fat pay raises. Ethical?
      Probably not. Someone should follow up on this too. When HCCA puts a treat in front of some people they swallow, turn and look the other way. Lets hope people will get a subpoena and eventually whom ever takes over gets rid of all the bad apples.

    • Truth16 With all the sexual crimes coming out these days…..(I laughed out loud) all women should stand together on that one. That could be a great way to get rid of HCCA if it was their employees.
      Tie them up in court with this…they would have to use their own money to fight that kind of suit.

  19. They are taking money from us everyday. My tax bill arrived over 10% is for bonds issued to the hospital. And we get no hospital and have to continue to pay. The idea we would have approved another bond was outrageous.

  20. A big question is other than Kumar, DID ANY TRMC BOARD Of DIRECTOR KNOW THE PROMISSORY NOTES EXISTED? Why were these notes NEVER made public until recently? How can TRMC be making money with over FIVE MILLION owed in 2015?

    I asked Mike Jamaica and he said NO to receiving any promissory notes. Hcca refused to give him and Kevin Northcraft any information since January. It isn’t until the bankruptcy court ordered Hcca to turn over information. Hcca’s response is that doing so “is a distraction!”

    This deed PROVES Hcca only cares about itself. Two things stand out. One is hcca demanding their monies by being placed first in line for the bankruptcy. Second is none of the wrong doings at TRMC is their fault!

    All blame is political, the doctors whom left with their patients, the citizens, and now racism. A cartoon depicting pure greed is being referred to as racist by Benzeevi and his attorneys. ANYTHING to shift blame away from the poor management skills in running a PUBLIC HOSPITAL.

    Hcca had since 2014 to turn around the hospital and make it as successful as they claimed. Other than throwing more money at bad management, what is the HCCA plan in moving forward? By the way, I heard Benny’s brother Iddo was sitting next to him in court last week.

  21. This is a crying shame that HCCA is allowed to keep bilking the Citizens of Tulare. If Chapter 9 is going to keep on dragging out The New Board needs other avenues to severe HCCA from TRMC.

    Do not be intimidated by HCCA throwing the race card, the it is the Doctors who left fault, the New Boards fault. These are all typical lawyer distractions to delay, distract, divide, deceive, the issue away from the spotlight. When a man can not face the truth he focuses the blame on others. If you are a truthful man you answer the question and accept the heat and spotlight. As Harry Truman said The Buck Stops Here!! At the end of the day you have to look at yourself in the mirror and say job well done if you can not then What Goes Around Comes Around!! If you play with fire eventually get burnt!! It all comes home in the long run!!

    We should send the former Board Members our Property Tax Bills. Let them pay for the Bonds!! We should stop patronizing their businesses!! Let them bail out the debt that has been thrust upon TRMC by their lack of oversight, failure to represent the electorate, derilecton of duty to sign an incomprehensible contract for HCCA. If Evolutions is lost let them replace the facility and pay for your memberships!!

    As I have stated before my family Will Not patronize HCCA. To KDDH we will go. So even if Benny wins he won’t get our hard earned dollars. We may be Country Bumpkins, Clod Busters who made our living off of the land. But we are College Educated Hicks and all my children are too!! We made our money the honest way thru hard work and toil !!Can HCCA say that? Sleep well!!

  22. Actually that is not a bad idea. I don’t know what the previous board members did, but boycott their and their families businesses.

    • Kumar is an obvious target for such a boycott. As it is, I cant believe he is still practicing in this town. He has made efforts to practice in Visalia, at least some of which have failed.

  23. Mr Levinson,

    Your accusation of race card is laughable at the most. It shows your low integrity and extreme desperation. It is also an insult to the intelligence of honorable judge Lastreto.

    I have seen that cartoon. If that plank with cross bar can be taken to represent swastika sign, you must also mean that everyone who has ever used elementary arithmetic is a nazi since that plan has nothing more in common with swastika sign than a plus sign has.

    Nice try Levinson. I doubt you have fooled anyone.

    If there is any race angle, it is that Benny has ashamed Jewish community. Such criminal behavior is not expected from people of Jewish faith.

    • Wrong photo KaDe. Sounds like you are suggesting the puppet one. Look further in the Citizens site for the man on top of people with his hands full of money.

      The cartoon was posted back in late February. No mention of faith until the emergency meeting late September. Just an hcca “distraction” to distort the truth and cover up their bad management at the hospital. Also their pure greed. All they care about is what is in it for them.

  24. the Chapter 9 should quickly set aside this encumbrance if for no other reason as it smacks of fraudulent conveyance (specific to bankruptcy whereby HCCA attempts to perfect a security interest at the expense of other creditors.

  25. at least in California, under for profit commercial corporations, a corporate officer has much personal exposure to shareholders under corporate malfeasance — quite likely the most liberally defined (to the detriment of the office) in the US — in this case, it should include the recently resigned or elected out of office former board members and certainly these HCCA corporate officers need to be held to account.

  26. I moved to tulare in 92,thought this town would be a nice place to raise my family.Really confused now.Seems like the good-ol-boy system is very alive in tulare and doing great .A mayor self serving ,A hospital eyesore ,roads are a mess,santa fe trail drug and drunk users paradise ,broken transportation system ,codes not being enforced,waste of money scary skate park and pedestrian bridge .very sad government !…

  27. Yes so so sad all you say is true, we need to hold the city counsel feet to the fire they waited to long to get involved with Hcca but again many unholy alliances between the two. Don’t give up attend the meetings ask question vote againest the lazy ones vote in people with no self interest. Ask them what is their plan when hepatitis A is rampant in this town with all the homeless allowed to defectcate and urinate in the areas you mentioned. Think San Diego,! T here are laws in the books.
    Enforce them,!,Ask why Exeter is thriving and tulare isn’t. It’s unbelievable what has been allowed to happen here

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