financetom
Business
financetom
/
Business
/
US Senate votes to hold Steward Health CEO in criminal contempt
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US Senate votes to hold Steward Health CEO in criminal contempt
Sep 25, 2024 3:19 PM

(Reuters) - The U.S. Senate voted to hold Steward Health Care CEO Ralph de la Torre in criminal contempt of Congress on Wednesday, after the executive refused to testify about cost-cutting decisions at the company's 31 hospitals before it filed for bankruptcy.

The unanimous vote came after de la Torre declined to attend a Sept. 12 hearing before the Senate Committee on Health, Education, Labor and Pensions that examined Steward's financial decline, even after he was subpoenaed.

The committee instead heard testimony from nurses and public officials who said that Steward prioritized corporate profits over patient care. The panel voted last week to issue a contempt resolution, leading to Wednesday's vote in the full Senate.

Senator Bernie Sanders, who chairs the committee, said it was important the full Senate send a message that even a wealthy individual like de la Torre who could afford yachts, jets and high-priced lawyers was "not above the law."

"If you defy the congressional subpoena, you will be held accountable no matter who you are or how well connected you may be," Sanders said.

The vote marked the first time since 1971 that the Senate had voted to make a criminal contempt referral to the U.S. Department of Justice, which would ultimately decide whether to bring charges.

"For everyone who has suffered due to Ralph de la Torre's greed and Steward's collapse, I hope the Department of Justice will move swiftly to bring charges against him," said Democratic Senator Ed Markey of Massachusetts, where several impacted hospitals were based.

Steward declined to comment, and a spokesperson for de la Torre did not respond to a request for comment.

Steward, the largest privately owned hospital network in the U.S., filed for bankruptcy in May, seeking to sell all of its 31 hospitals and address its $9 billion in debt. The company has sold several hospitals since filing for bankruptcy.

Federal prosecutors in Boston have been investigating de la Torre and Steward, a person familiar with the matter has said.

De la Torre had previously argued that the Senate committee hearing was designed to violate his Fifth Amendment rights and frame him "as a criminal scapegoat for the systemic failures in Massachusetts' healthcare system."

He has said that it would be inappropriate for him to testify before Congress about Steward's finances while the company is negotiating court-supervised bankruptcy settlements.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Volkswagen to recall over 177,000 SUVs over loose engine cover, NHTSA says
Volkswagen to recall over 177,000 SUVs over loose engine cover, NHTSA says
Mar 7, 2025
March 7 (Reuters) - Volkswagen will recall 177,493 crossover SUVs in the United States over concerns related to a loose engine cover, the National Highway Traffic Safety Administration said on Friday. The engine cover may have been improperly installed after vehicle service, allowing it to come loose and contact hot engine surfaces, potentially increasing the risk of a fire, the...
Volkswagen to recall over 177,000 SUVs over loose engine cover, NHTSA says
Volkswagen to recall over 177,000 SUVs over loose engine cover, NHTSA says
Mar 7, 2025
(Reuters) - Volkswagen will recall 177,493 crossover SUVs in the United States over concerns related to a loose engine cover, the National Highway Traffic Safety Administration said on Friday. The engine cover may have been improperly installed after vehicle service, allowing it to come loose and contact hot engine surfaces, potentially increasing the risk of a fire, the U.S. auto...
Broadcom Stock Surges Nearly 13% In Friday Pre-Market: What's Going On?
Broadcom Stock Surges Nearly 13% In Friday Pre-Market: What's Going On?
Mar 7, 2025
Shares of Broadcom Inc. ( AVGO ) climbed 12.7% during the pre-market trading session on Friday following the company’s first quarter earnings and revenue beat. What Happened: Broadcom ( AVGO ), a leading semiconductor company, reported first quarter revenue of $14.92 billion, surpassing the forecasted $14.61 billion on Thursday. The company’s adjusted earnings stood at $1.60 per share, exceeding the anticipated $1.49...
S&P cuts Nissan credit rating to 'BB'
S&P cuts Nissan credit rating to 'BB'
Mar 7, 2025
TOKYO (Reuters) - S&P Global Ratings said on Friday it had cut its long-term issuer credit ratings on Nissan Motor to 'BB'. It said that prospects for a fast improvement in Nissan Motor's automotive business to levels comparable with similarly rated peers' are now remote. ...
Copyright 2023-2026 - www.financetom.com All Rights Reserved