Kansas anesthesia group sues former presidents for fraud — 7 insights

Wichita, Kan.-based Mid-Continent Anesthesiology filed a lawsuit against two of its former presidents alleging fraud, The Wichita Eagle reports.

Here's what you should know.

1. The practice alleged former presidents Gerard Bassell and Robert McKay stole $4 million through "threats and intimidation."

2. Both Mr. Bassell and Mr. Mckay filed motions to dismiss the case.

3. An attorney for the practice alleged Mr. Bassell ran the practice as a "benevolent dictatorship." A court filing claims Mr. Bassell met shareholder requests for financial data with intimidation.

The suit said, "Mr. Bassell made it clear such requests would be met with consequences."

4. The practice also alleged Mr. Bassell extorted more than $4 million from funds, which was concealed as compensation, bonuses or administrative salaries.

5. Mr. Bassell claimed the practice was in dire financial need in 2012. To correct that, Mr. Bassell determined shareholders' salaries and vacation time would need to be cut. At the same time, Mr. Bassell allegedly increased his vacation time and raised his own pay by $85,000. Mr. Bassell retired, and appointed Mr. McKay as his successor in direct violation of corporate bylaws.

6. Mr. McKay allegedly paid himself an extra administrative salary and loaned himself money through the corporation, later forgiving the loan after several payments.

7. Mr. McKay was unanimously dismissed in August 2017.

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