Updated: Braking Point Issues Statement on Raids
AUSTINTOWN, Ohio – More than 100 law enforcement agents executed search warrants Wednesday morning at two buildings here operated by Braking Point Recovery Center while other agents raided raiding the company’s treatment center in Columbus as well as the Leetonia home of Braking Point’s owner and CEO, Ryan Sheridan.
The raids began at 9 a.m. Six agencies were involved: The Federal Bureau of Investigation, the U.S. Department of Health and Human Services, the Drug Environment Agency, Internal Revenue Service, Ohio Attorney General Medicaid Fraud Task Force and the Ohio Pharmacy Board.
Braking Point operates locations here at 45 N. Canfield-Niles Road and in Columbus. According to the company’s website, it plans to open a third site in Wooster.
A statement was issued late Wednesday on behalf of Braking Point Recovery Center and Sheridan by the law firm of Friedman & Rummell Co.:
“At this point, we are unaware of the extent of the investigation, and until we have a better understanding of its scope, we are simply unable to provide any information at this time. We are hopeful that Braking Point can continue its operations to serve the community,” the statement concluded.
There is no indication why Braking Point could not continue its operations. Speculation in the press suggests the investigation may be focused on Medicaid reimbursements for patients undergoing treatment as well as federal funds to combat drug abuse.
FBI Special Agent Vicki Anderson said this morning that the search warrants are under seal and no arrests were expected today. She is asking the public with any information or concerns about Braking Point and its treatment centers to call the Cleveland office of the FBI at 216 522 1400.
And Anderson said she did not anticipate any additional information to be made available today. More information likely would come out if anyone is charged.
The company’s founder, Sheridan, is active in a number of redevelopment projects in downtown Youngstown. He purchased the Gallagher Building earlier this year from the Gatta Co., and estimated the cost for renovating it for apartments, retail and restaurant use at about $4 million. And he plans to open a restaurant on the first floor of the Wick Building, which is owned by Dominic Marchionda’s NYO Property Group. Sheridan said in May that the restaurant venture would open in September.
He gained a high profile in the community with what the Braking Point website describes as “his efforts to raise money for a local cause with a thrill-seeking endeavor.” In July he traveled to Spain to participate in the annual Running of the Bulls ceremony to raise money for the Rich Center for Autism and in February he raised $30,000 for the Rich Center after climbing Mount Kilimanjaro.
Shortly before noon, a staffer at Braking Point’s recovery center in Austintown, said Ryan was in a meeting. A request for comment was left at Austintown, which added a 34-room residential treatment center last September.
The former director and co-owner of Braking Point’s Columbus facility, Thomas Dailey, was found dead earlier this year in a Trumbull County hotel room. Last week the coroner ruled the cause of death as an accidental overdose.
Copyright 2024 The Business Journal, Youngstown, Ohio.