#USA #Inc. #Los Angeles #Orthopros #Joel Bernknopf #John Lamorte

Lawsuit for Alleged Fraud in Healthcare Sale: A Cautionary Tale

In the world of healthcare, integrity and trust are paramount. However, Joel Bernknopf and John Lamorte, the founders of Orthopros, Inc., a venerable institution in the Los Angeles healthcare landscape, have found themselves caught in a web of deceit following a business sale they had hoped would secure their legacy and retirement. After nearly four decades of service to the community, their future is in jeopardy, with claims of fraud amounting to $1.5 million at play.

When Bernknopf and Lamorte decided to step back from their thriving practice, they envisioned an orderly and responsible transfer of ownership. Their decision to sell was rooted in trust, as they were introduced to a buyer who portrayed himself as a seasoned professional in the healthcare sector. The buyer had previously acquired two other reputable healthcare businesses, reinforcing the sellers’ belief that they were making a sound decision.

However, as the lawsuit reveals, this trust was misplaced. The allegations paint a troubling picture of a calculated scheme allegedly orchestrated by the buyer, who, according to the complaint, lured Bernknopf and Lamorte into selling Orthopros for unsecured promissory notes. These financial instruments, promising future stability, have now evolved into nothing but unfulfilled promises, as five years have passed with no payments made.

“Selling Orthopros was meant to signify the culmination of our careers, a way to relax knowing our life's work was in capable hands,” stated Bernknopf. “Instead, we are left with nothing but shattered expectations and immense financial loss.”

The lawsuit, filed at the Los Angeles Superior Court under case number 21STCV43430 and set for trial on January 27, 2025, further exposes an alleged pattern of misconduct beyond just the sale itself. They argue that the buyer, aided by his wife and business associates, diverted essential revenues and profits from Orthopros to finance personal luxuries and unrelated business ventures, all while neglecting their financial obligations to the original owners.

Once regarded as a cornerstone of the community, Orthopros provided crucial services even to professional athletes from esteemed teams like the LA Rams, Raiders, and Dodgers. The situation now casts a pall over their esteemed legacy as Bernknopf and Lamorte seek to reclaim their lost trust and financial security.

Additionally troubling is the implication that the buyer misappropriated federal Economic Injury Disaster Loan funds, meant to stabilize businesses during the COVID-19 pandemic. Instead of utilizing these resources for Orthopros, the lawsuit alleges that the funds were funneled toward personal expenses and failed business investments.

The implications of this case reach far beyond just the parties involved. Fraudulent practices against small businesses are an ongoing and systemic issue. According to the Association of Certified Fraud Examiners’ report from 2022, small businesses experience the highest median losses due to fraud, and this case serves as a warning and a lesson.

“Our narrative is a cautionary tale for every small business owner out there,” remarked Lamorte. “If this can happen to us after all our hard work and dedication, it can happen to anyone.”

As they prepare for their court battle, the stakes could not be higher—not just for Bernknopf and Lamorte, but for the wider community of small business owners who watch closely, hoping their story will foster greater awareness and preventive measures against fraud. The upcoming trial promises to unveil much about the integrity of business transactions in the healthcare sector and perhaps serve as a pivotal moment in the fight against fraudulent exploitation.