A Senate committee on Thursday voted overwhelmingly to hold the wealthy CEO of a failed hospital chain in civil and criminal contempt for rejecting a rare subpoena from the lawmakers.
In July, the Senate Committee on Health, Education, Labor, and Pensions (HELP) subpoenaed Steward Health Care CEO Ralph de la Torre to testify before the lawmakers on the deterioration and eventual bankruptcy of the system, which included more than 30 hospitals across eight states. The resulting dire conditions in the hospitals, described as providing “third-world medicine,” allegedly led to the deaths of at least 15 patients and imperiled more than 2,000 others.
The committee, chaired by Senator Bernie Sanders (I-Vt.), highlighted that amid the system’s collapse, de la Torre was paid at least $250 million, bought a $40 million yacht, and owned a $15 million luxury fishing boat. Meanwhile, Steward executives jetted around on two private jets collectively worth $95 million.
De la Torre initially agreed to appear at the September 12 hearing but backed out the week beforehand. He claimed, through his lawyers, that a federal order stemming from Steward’s bankruptcy case prohibited him from discussing the hospital system’s situation amid reorganization and settlement efforts. The HELP committee rejected that explanation, but de la Torre was nevertheless a no-show at the hearing.
In a 20–0 bipartisan vote Thursday, the HELP committee held de la Torre in civil and criminal contempt, with only Sen. Rand Paul (R-Ky.) abstaining. It is the first time in modern history the committee has issued civil and criminal contempt resolutions. The charges will now go before the full Senate for a vote.
If upheld by the full Senate, the civil enforcement will direct the Senate’s legal counsel to bring a federal civil suit against de la Torre in order to force him to comply with the subpoena and testify before the HELP Committee. The criminal contempt charge would refer the case to the US Attorney for the District of Columbia to criminally prosecute de la Torre for failing to comply with the subpoena. If the trial proceeds and de la Torre is convicted, the tarnished CEO could face a fine of up to $100,000 and a prison sentence of up to 12 months.
On Wednesday, the day before the committee voted on the contempt charges, a lawyer for de la Torre blasted the senators and claimed that testifying at the hearing would have violated his Fifth Amendment rights, according to the Boston Globe.
In a statement Thursday, Sanders slammed de la Torre, saying that his wealth and expensive lawyers did not make him above the law. “If you defy a Congressional subpoena, you will be held accountable no matter who you are or how well-connected you may be,” he said.
