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LifeCare Systems Update... Lawsuit!

November 22, 1999

SOURCE PR Newswire

Ryan Sues Aurora Medical Facility & Lab for Selling False Hope of Cure To Consumers Suffering from Devastating Diseases

CHICAGO, Nov. 17 /PRNewswire/ -- Attorney General Jim Ryan sued an Aurora medical clinic, associated lab and its operators late today for making gross misrepresentations and promising to cure consumers suffering from numerous devastating diseases such as multiple sclerosis, lupus, and amyotrophic lateral sclerosis (Lou Gehrig's Disease).

"We are alleging that these defendants preyed on vulnerable consumers," Ryan said, "selling them false hope of a cure and cheating them out of thousands of dollars for ineffective and sometimes dangerous treatment."

Ryan filed suit in Cook County Circuit Court charging Life Care Systems, L.L.C., GenSys, Inc. (Life Care's associated lab), Stephen Wechter and John Peterson with violating the Illinois Consumer Fraud and Deceptive Business Practices Act. All defendants allegedly operated their scam from offices at 101 S. Broadway, Aurora.

The suit alleges that Wechter and Peterson told patients suffering from numerous neurological and other diseases that they could cure or improve their conditions within six months to two years. The defendants told patients that they had sound medical evidence that they had found the cure to diseases including multiple sclerosis, lupus, Lou Gehrig's disease, rheumatoid arthritis, Alzheimer's disease and other degenerative disorders. In addition, the defendants claimed to have cured 50 percent to 75 percent of their patients.

Consumers were given information claiming that a bacteria known as spirochete -- found in water -- caused their diseases and only the GenSys lab had the technology to detect it. Life Care Systems employed doctors to prescribe various antibiotics that defendants claimed would cure the disease based on blood test results provided by the GenSys lab. The defendants also told one patient not to tell her regular doctors that she was being treated by Life Care.

The suit further alleges that between July 1998 and October of this year, Life Care Systems employed four different physicians to prescribe medications to patients. The most recently employed, Dr. Steven Ayers, quit in October and posted his reasons on the Internet, warning consumers. In August, the U.S. Department of Health and Human Services suspended the defendant's lab from operation, citing deficiencies that constituted an immediate jeopardy to the health and safety of patients served by the lab. Life Care Systems remained open and the defendants are appealing the shutdown of the lab.

When Ryan's Health Care Bureau served an administrative subpoena on the defendants asking the defendants to substantiate their claims, the defendants failed to provide any evidence that they had a cure or had helped any patients recover. Seven patients filed affidavits with Ryan's office detailing gross misrepresentations made by defendants and hundreds of dollars spent on blood tests, antibiotics, and other treatments. In some cases, the suit alleges, patients became seriously ill as a result of the treatment sold by defendants.

Alleged violations include: -- misrepresenting that they could cure various diseases; -- misrepresenting that they had discovered the bacteria which caused various diseases and that their lab was the only one in the world that could detect it; -- misrepresenting that they had cured patients suffering from various diseases; and -- misrepresenting defendants' qualifications to oversee a clinical laboratory.

Consumers who complained to Ryan's office include: 1. a Chicago woman suffering from multiple sclerosis, 2. a North Riverside woman suffering from multiple sclerosis, 3. a Naperville man suffering from multiple sclerosis, 4. a Joliet woman suffering from multiple sclerosis, 5. a Montgomery man suffering from Lou Gehrig's disease, 6. a Roselle woman suffering from lupus and 7. a Portland, Oregon woman suffering from multiple sclerosis.

In addition, Ryan's Health Care Bureau received approximately 18 consumer complaints against defendants regarding various unfair billing practices.

Ryan is seeking an injunction to stop the defendants from owning, operating or managing a medical facility or clinical laboratory. Ryan is also asking the court to revoke business licenses and charters. Additionally, the suit seeks restitution to consumers, costs, a $50,000 civil penalty and an additional $50,000 for every act found committed with intent to defraud. ............ I sent this to Dr. Lindner at Texas A&M to get his response, here it is...

Thanks. I've been hoping to see something like this for a long time. From what I know of that operation, they have done a lot of serious harm, both to individual patients and to the science that is being done by some legitimate people. Incidentally, Dr. Steven Ayers has been in contact with me. He is very unhappy about them and feels that he was really duped. It appears that LifeCare/GenSys was reporting results on lab tests that were never performed and that many of the things that they claimed to be doing in the lab were not reproducible in other hands, even using the same materials. Their treatment claims, of course, drastically exceeded what they could actually do.

Gradually making progress at our end. Luther E. Lindner M.D., Ph.D., Department of Pathology and Laboratory Medicine, TAMU. lindner@tamu.edu. Ph (409) 845-7260 home (409) 693-3940. ...... Another response is from Lisa Lisala640 & MS Antibiotic Treatment (Page 1) (this link is no longer active), who's doing well with LifeCare....

Thanks for the link, WBBM TV in Chicago did an investigative report on LifeCare. I'm very hopeful with this treatment, I have had great results and just heard from a man with CPMS who has gone from a wheelchair to cane over 14 months of treatment. I know Vanderbilt School of Medicine is doing their own research into this, I'm sure this is not the last we have heard about this bacterial connection. ~ Lisa. ...... There IS something to this treatment, Texas A&M and Vanderbilt University are doing legitimate studies. LifeCare is "Shooting from the hip", using falsified research, claiming and charging too much.... Their mistake!!

One thing that may come out of this... IS THE TRUTH! If they don't settle out of court, what comes out in court should be interesting! After they get through the costs charged for treatment, the pros and cons of antibiotic treatment should be laid out on the table. This joint lawsuit could be helpful all the way around! Maybe this will be the push that's needed for someone (whomever someone is!) to get off the stick and start GETTING MSERS BETTER!

 

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