Hoboken Hospital Bankruptcy Lawyers awarded $1,083,941.77 for August through October “first interim allowances”

December 8, 2011 – Ed Mecka - Edmecka.com

Newark, NJ - December 7, 2011: The United States Bankruptcy Court District of New Jersey signed an order granting the first interim allowance to the law firm representing HUDSON HEALTHCARE, INC. “HHI”, the bankrupt non-profit private corporation “manager” of Hoboken University Medical Center. 

HHI’s bankruptcy counsel TRENK, DiPASQUALE, WEBSTER, DELLA FERA & SODONO, P.C. was awarded $1,083,941.77 representing fees and expenses for the “First Interim Fee Application for the Period August 1, 2011 through October 31, 2011.” 

During the bankruptcy process, newspapers and political blogs have reported allegations of bankruptcy fraud with respect to HHI and the Hoboken Municipal Hospital Authority. 

In letters dated September 14, 2011, New Jersey Senator Loretta Weinberg (D-Bergen), chair of the Senate Health, Human Services & Senior Citizens Committee called upon New Jersey Attorney General Paula Dow and US Attorney Paul Fishman to initiate an investigation.

Court papers filed September 12, 2011 includes an interesting email exchange between HHI’s former legal counsel Donald Scarinci and HHI’s present bankruptcy counsel Joseph DiPasquale. 

Case 11-33014-DHS Doc 168 Filed 09/12/11 Entered 09/12/11 14:58:48 Desc Main Document Page 10 of 11

From: Donald Scarinci [mailto:DScarinci@scarincihollenbeck.com]
Sent: Saturday, September 03, 2011 03:11PM
To: Joseph J. DiPasquale <JDiPasquale@trenklawfirm.com>; Andrew Sherman; Thomas M. Walsh TWalsh@trenklawfirm.com
Cc: Joel R. Glucksman <JGiucksman@scarincihollenbeck.com>; Mark K. Follender <MFollender@scarincihollenbeck.com>

Subject: FW: Hudson Healthcare, Inc., case No. 11-33014

Since I was the one who first made contact with Andy Aaronson advising him that I was served with a subpoena, I had assumed that he would contact you and that your office would be offering helpful advise and assistance.  I am surprised to read your threatening letter and cursory restatement of the law on the attorney client privilege.

I have made it very clear that I will not participate in the fraud that I believe your team of lawyers is attempting to perpetuate in the bankruptcy court. As everyone knows, I resigned from HHI precisely because I could not and would not be a part of any of this.  I am not concerned about my legal fees because they will eventually be paid in full by the City of Hoboken, the ultimate indemnitor of HHI's debts.

However, I am concerned that the court knows that my law firm had no part in this insult to its intelligence and integrity.  I am also deeply concerned that I am doing the right thing under the rules of attorney ethics and remain consistent with my own conscience.   As I wrongly assumed you knew, since we are not strangers to each other, I am unaffected by threats, intimidation or promises of employment. Your "Hoboken Revolt" clients never figured that out and I've lived through over a year of this nonsense.

Perhaps by Tuesday, after you have had some time to yourself, your can conduct yourself in a more collegial manner and we can try this again. I am not your adversary. My suggestion is that you work out a mechanism to assert your claims of privilege to any document that my office provides and that if you and Mr. Sherman do not agree then your procedure can involve in-camera review by the court or the court's designee. I will consult with attorneys in my office once they review the scope of the subpoena and someone from here will be in touch with Mr. Sherman with a production schedule.

Donald

Determining if there is any truth to the following statements by Lawyer Scarinci may best be accomplished by a law enforcement investigation.

“I have made it very clear that I will not participate in the fraud that I believe your team of lawyers is attempting to perpetuate in the bankruptcy court”

 “As everyone knows, I resigned from HHI precisely because I could not and would not be a part of any of this”

 “During the period of retention, which ended on July 15,2011, I was a firsthand witness to a pattern of conduct by HMHA (Hoboken Municipal Hospital Authority) members to intimidate, threaten, control, abuse, and attempt to force the CEO of HHI and members of the HHI Board to take actions adverse to its charter and otherwise to violate the laws of the State of New Jersey - Case 11-33014-DHS Doc 168 Filed 09/12/11 Entered 09/12/11 14:58:48 Desc Main Document Page 4 of 11”

We should not forget that Lawyer Scarinci is an “Officer of the Court” and his words should not be taken lightly.  The document is a “Declaration made by Donald Scarinci” with the last line stating “Pursuant to 28 U.S.C. §1746, I declare under penalty of perjury that the foregoing is true and correct. “

Stay tuned!  After having personally read almost all of the 450 HHI bankruptcy court documents/filings, my investigative instincts point toward much deeper issues and concerns that will be the subject of future articles.  

Of particular interest are the circumstances surrounding the replacement of the Governor's representative on private non-profit HHI’s board of Directors, the resignation of three other board members and the political affiliations of their replacements, and the Fourth Amendment to the Manager Agreement, which contained the terms and conditions of the resignation.