Company News

Feds Seek Forfeiture of Sheridan’s $959,300 Home

YOUNGSTOWN, Ohio — Federal prosecutors want to seize the Leetonia mansion owned by Ryan P. Sheridan on the grounds that Sheridan and his Braking Point Recovery Services may have committed health care fraud and engaged in money laundering.

The home 41079 Spring Hill Drive, was purchased by Sheridan in September 2016 for $800,000. The value was since reappraised at $959,300 by the Columbiana County auditor’s office. Records show that $12,031.53 in property taxes are owed for 2017; no payments have been made as of this posting.

The new complaint for forfeiture of Sheridan’s home was filed in U.S. District Court here by James Morford, assistant U.S. attorney for the Northern District for Ohio.

It is separate from the first forfeiture complaint that Morford filed March 22, which followed federal agents raiding Sheridan’s home and Braking Point’s offices here and in Columbus. In all, the government has seized and restricted $3,454,308.65 in cash and vehicles in the possession of Sheridan and his company.

On April 28, Judge John R. Adams issued an order that stated the first forfeiture complaint, “pending the completion of the related criminal investigation/potential criminal prosecution of claimant Ryan R. Sheridan.”

The court also granted Sheridan an extension to file answers to the first complaint. Unless a stay is granted in the second complaint, he must assert a verified claim to the Leetonia house within 35 days.

Judge Adams is handling both complaints.

Also today, two local attorneys, Damian A. Billak and Gregg A. Rossi, filed notices with the court that they now represent Sheridan and four of his companies: Braking Point Recovery Center, Braking Point Leasing, Sheridan’s Cool Cars and Sheridan Enterprises.

Prosecutors say the FBI began investigating Braking Point in December 2016 “based on hotline complaints from former employees of the business and the high volume of Medicaid reimbursements.”

According to court documents, Braking Point submitted 134,744 claims to Medicaid from May 12, 2015, through Oct. 12, 2017, and Braking Point was reimbursed $31,099,468. On Oct. 18, Medicaid suspended payments “based upon a credible allegation of fraud.” Within days, Braking Point had closed its treatment centers.

No criminal charges have been filed.

Pictured at top: Ryan P. Sheridan’s home at 41079 Spring Hill Road in Leetonia.

Published by The Business Journal, Youngstown, Ohio.