In Re Peter Gottheiner, Bankrupt. United States of America v. Peter Gottheiner

Peter Gottheiner appeals the decision of the district court, which affirmed the bankruptcy court’s decision against him in an adversary proceeding. In that proceeding, the United States obtained a judgment against Gottheiner for violating federal priority statutes. The bankruptcy court based its judgment in part on a prior decision against a wholly-owned corporation of Gottheiner’s. He now argues that the bankruptcy court clearly erred in giving collateral estoppel effect to the prior judgment and in disregarding the evidence as to other factual findings. We affirm the decision of,the district court.

I

In 1967 Peter Gottheiner, a registered physical therapist, and Robert Sitkin, a medical doctor, formed a corporation, California Coordinated Health Care Services, Inc. (CCHCS). At first Gottheiner owned half the corporation’s outstanding shares. By 1969 he had become the sole shareholder.

CCHCS participated in the Medicare program during 1968,1969 and 1970. Upon rendering services to patients, CCHCS would submit statements to the government’s agent and fiscal intermediary, Blue Cross, which in turn periodically paid CCHCS for its services on the basis of what the intermediary…