Changes

==Westside Rehabilitation Center==

==Westside Rehabilitation Center==

In 1978, Fryar purchased for $100,000 more than six acres of land in Cheneyville from the Rapides Parish School Board to establish the 180-bed Westside Rehabilitation Center, a non-profit corporation designed to house the mentally retarded. The purchase also included a 30-year-old vacant school building. Fryar incorporated Westside in 1979. Later, he altered the description of the clientele  to include severely mentally and emotionally-disturbed patients. Fryar obtained a certificate of need to justify the establishment of Westside despite opposition from some officials of the Louisiana Department of Health and Human Resources. Westside initially had no capital assets; it relied on the sale of bonds as its only revenue source. Thereafter, Westside planned  to obtain [[Medicaid]] funds from the state to pay for the care of indigent patients. The bonds were to be retired from the Medicaid monies. Fryar had trouble finding capital funding for the project. Investors who owned bonds issued by the rehabilitation center alleged that Fryar and his co-defendants caused the bondholders to lose millions of dollars. After a two-month trial, the jury returned a multi-million-dollar verdict in favor of the plaintiffs and against Fryar and the co-defendants. The United States District Court for the Western District of Louisiana, entered judgment on the verdict and awarded plaintiffs damages totaling approximately $15.5 million. All of the defendants appealed the judgment.<ref name=shawdenies/>  

In 1978, Fryar purchased for $100,000 more than six acres of land in Cheneyville from the Rapides Parish School Board to establish the 180-bed Westside Rehabilitation Center, a non-profit corporation designed to house the mentally retarded. The purchase also included a 30-year-old vacant school building. Fryar incorporated Westside in 1979. Later, he altered the description of the clientele  to include severely mentally and emotionally-disturbed patients. Fryar obtained a certificate of need to justify the establishment of Westside despite opposition from some officials of the Louisiana Department of Health and Human Resources. Westside initially had no capital assets; it relied on the sale of bonds as its only revenue source. Thereafter, Westside planned  to obtain [[Medicaid]] funds from the state to pay for the care of indigent patients. The bonds were to be retired from Medicaid monies. Fryar had trouble finding capital funding for the project. Investors who owned bonds issued by the rehabilitation center alleged that Fryar and his co-defendants caused the bondholders to lose millions of dollars. After a two-month trial, the jury returned a multi-million-dollar verdict in favor of the plaintiffs and against Fryar and the co-defendants. The United States District Court for the Western District of Louisiana, entered judgment on the verdict and awarded plaintiffs damages totaling approximately $15.5 million. All of the defendants appealed the judgment.<ref name=shawdenies/>  

The lawsuit against Fryar claimed a lack of disclosure in the issue of $13,550,000 in tax-exempt bonds in 1982 to finance the center. Nor was the land transaction itself disclosed. The Bermuda Company, location and ownership unavailable, owned $2.8 million in Westside bonds and collected 16.5 percent in annual interest payments until Westside could no longer pay the bondholders. Westside declared bankruptcy in 1985.<ref name=shawdenies/>

The lawsuit against Fryar claimed a lack of disclosure in the issue of $13,550,000 in tax-exempt bonds in 1982 to finance the center. Nor was the land transaction itself disclosed. The Bermuda Company, location and ownership unavailable, owned $2.8 million in Westside bonds and collected 16.5 percent in annual interest payments until Westside could no longer pay the bondholders. Westside declared bankruptcy in 1985.<ref name=shawdenies/>