MedCorp President Richard Bage is being sued by Huntington National Bank for allegedly hiding money in their son's bank account to avoid paying $10 million judgement.
Huntington National Bank has sued the co-founder of MedCorp Inc. ambulance service, his wife, and one of their sons for allegedly hiding money in their son's bank accounts to avoid paying a $10 million judgment stemming from defaulted loans.
The suit filed in Lucas County Common Pleas Court filed claims Richard Bage and his wife, Laurette, wired $272,222 into three bank accounts controlled by their son, Justin Bage. The bank obtained a court order freezing Justin's bank accounts Thursday, the day the suit was filed.
Huntington's lawsuit said Justin Bage opened the accounts at PNC Bank on Aug. 12, 2010, six days after Huntington received a $10 million judgment against Richard and Laurette Bage for defaulting on two commercial loans to MedCorp.
The Toledo ambulance firm filed for Chapter 11 bankruptcy protection before Huntington could collect and a receiver was appointed. Two bidders, including Mr. Bage, sought to buy MedCorp and submitted $500,000 deposits.
The Bages have denied in a debtors' examination ordered by the bankruptcy court that they transferred money or assets to anyone, including their son. But Huntington, which obtained Justin's PNC bank statements, found deposits totaling $272,222 between Feb. 22 and July 13. "Despite earning ... [an approximate] $50,000/year salary as an employee of MedCorp, Justin's bank records reflect deposits and/or transactions which on certain days exceed his yearly salary," it said.
The suit also said Laurette Bage began diverting her earnings of $6,000 a month from her new employer into Justin's bank account.
"In light of the foregoing, it is evident that a substantial portion of the monies being deposited into and transferred from Justin's accounts are in reality the assets of Richard and Laurette," the lawsuit said.
Huntington is demanding repayment of loans, compensatory and punitive damages, and attachment or garnishment of the Bages' assets.
Richard Bage did not return a call seeking comment.