| | 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/> |
| − | Meanwhile, on January 21, 1985, U. S. District Judge Henry Woods of the Eastern District of [[Arkansas]], slapped Fryar with a permanent Injunction which forbade the architect from any future violations of the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. Fryar consented to Judge Woods' order without admitting or denying the allegations in the previous complaint filed on March 30, 1984. The complaint alleged that thorugh Westside Habilitation Center, Inc., Fryar violated the antifraud provisions of the securities laws in the offer and sale of the $13,550,000 in bonds<ref>{{cite web|url=https://www.sec.gov/news/digest/1985/dig020185.pdf|title=Joe E. Fryar enjoined|publisher=Sec.gov|date=February 4, 1985|accessdate=August 9, 2018}}</ref> | + | Meanwhile, on January 21, 1985, U. S. District Judge Henry Woods of the Eastern District of [[Arkansas]] slapped Fryar with a permanent Injunction which forbade the architect from any future violations of the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. Fryar consented to Judge Woods' order without admitting or denying the allegations in the previous complaint filed on March 30, 1984. The complaint alleged that thorugh Westside Habilitation Center, Inc., Fryar violated the antifraud provisions of the securities laws in the offer and sale of the $13,550,000 in bonds<ref>{{cite web|url=https://www.sec.gov/news/digest/1985/dig020185.pdf|title=Joe E. Fryar enjoined|publisher=Sec.gov|date=February 4, 1985|accessdate=August 9, 2018}}</ref> |
| | On February 19, 1987, a civil jury in the case ''Abell v. Potomac Insurance Company'' found Fryar and the co-defendants liable for $15.5 million. Judge John Malach Shaw (1931-1999) of Lafayette, an appointee of [[U.S. President]] [[Jimmy Carter]], for potential [[Medicaid]] fraud and racketeering in connection with the financing of the Westside center. The judge ordered Fryar and the co-defendants to pay more than $14 million to Lafayette attorney Edward C. Abell, Jr. (born January 4, 1938), Carey Walton, a [[business]]man from Opelousas, and the purchasers of Westside revenue bonds. The defendants were cited in violation of the Securities and Exchange acts and the Louisiana Blue Sky Act.<ref name=shawdenies>{{cite web|url=https://www.newspapers.com/newspage/216876806/|title=Shaw Denies New Fryar Trial|author=Jim Leggett|publisher=''The Alexandria Town Talk''|date=March 28, 1987|page=4|accessdate=August 8, 2018}}</ref> | | On February 19, 1987, a civil jury in the case ''Abell v. Potomac Insurance Company'' found Fryar and the co-defendants liable for $15.5 million. Judge John Malach Shaw (1931-1999) of Lafayette, an appointee of [[U.S. President]] [[Jimmy Carter]], for potential [[Medicaid]] fraud and racketeering in connection with the financing of the Westside center. The judge ordered Fryar and the co-defendants to pay more than $14 million to Lafayette attorney Edward C. Abell, Jr. (born January 4, 1938), Carey Walton, a [[business]]man from Opelousas, and the purchasers of Westside revenue bonds. The defendants were cited in violation of the Securities and Exchange acts and the Louisiana Blue Sky Act.<ref name=shawdenies>{{cite web|url=https://www.newspapers.com/newspage/216876806/|title=Shaw Denies New Fryar Trial|author=Jim Leggett|publisher=''The Alexandria Town Talk''|date=March 28, 1987|page=4|accessdate=August 8, 2018}}</ref> |