Shimko

I. Background and Prior Proceedings

Richard Ross, David Goldfarb, Paul Woodcock, and Guen- ther (collectively, “Defendants”) were limited partners of the CORF entities.1 The CORF entities offered clients consulting and management services to help them establish and operate Medicare-compliant outpatient treatment facilities. Upon commencement of the CORF entities’ operations, Guenther was in charge of field operations, actively lectured at CORF marketing seminars, and helped find locations and medical directors for CORF clients. 1 The defendants named in Shimko’s complaint also included Joel Brill and Fred Ritchie, officers of the CORF entities, and each defendant’s spouse. Brill and Ritchie stipulated to a dismissal of Shimko’s complaint and appeal. The district court dismissed the suit as to all spouses except the spouses of Woodcock and Guenther because Arizona is a community property state where the community may be held liable for the debts of a partnership in which one spouse participated. 13890 SHIMKO v. GUENTHER During the period from late 2001 to 2003, a number of the CORF entities’ clients located in various parts of the country threatened to file or…