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Sullivan & Worcester LLP Announces Multimillion Dollar Judgment for its Health Care Client in Massachusetts Federal Court Against RICOS&W Press Release, September 15, 2008BOSTON, MA -- September 15, 2008, a Boston federal judge entered judgment in the amount of $5,368,955.58, plus 12 percent prejudgment interest since June 30, 2004, in favor of EDCare Management, Inc., a national health care company based in Fort Lauderdale, Florida, and against Robert D. Larsen, a resident of Colorado. EDCare brought suit against Mr. Larsen and Peter Peggs of Beverly, Massachusetts. The complaint alleged that the defendants implemented a nationwide financial services scam, through entities doing business as “Security Trust Insurance Company, Ltd.,” “Ameristar,” and “Mercury Financial Services Limited,” for at least several years, as part of a conspiracy and pattern of fraudulent conduct enabling them to bilk companies and/or individuals out of tens of millions of dollars. The complaint also alleged that, even after several states issued cease-and-desist orders against the defendants and/or their entities, they continued to collect significant premiums from victims while never intending to provide the medical malpractice or other insurance coverage or financial services as they promised. EDCare’s lawyer, Barry S. Pollack, a partner of S&W’s Boston office and a former federal prosecutor, explained that “civil claims under the Racketeer Influenced and Corrupt Organizations Act, commonly known as RICO, require proof of a pattern of unlawful conduct over a long period of time, which can often be difficult to establish. Here we benefitted from the commencement of federal criminal charges against the same defendants in Michigan while our civil action was pending.” Ron Kurtz, EDCare’s General Counsel, stated that “EDCare’s commitment to compliance motivates tenacious advocacy against those engaged in financial frauds, the victims of which could ultimately be patients.” Pollack added, “Mr. Larsen invoked his Fifth Amendment rights against self-incrimination during discovery, which allowed an adverse inference against him. When Mr. Larsen failed to appear for a required proceeding, we moved forward promptly for a default judgment.” Mr. Larsen’s attorneys withdrew during the pendency of the action. #### About EDCare About Sullivan & Worcester LLP Contact:
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