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Ex-recovery center owner suing wife from prison

YOUNGSTOWN — Imprisoned former Braking Point Recovery Center owner Ryan P. Sheridan sued his wife Kristin M. Sheridan on the same day he filed to divorce her.

Ryan Sheridan, 41, is housed at the Ashland Federal Correctional Center in Ashland, Ky., after U.S. District Judge Benita Y. Pearson sentenced him to 7 1/2 years in prison Jan. 22, 2020, for driving a $24.5 million health care fraud.

During Sheridan’s sentencing, a federal prosecutor said Sheridan ran a “massive health care fraud” through the company involving false Medicare claims at his main facility in Austintown and another in the Columbus area.

The company billed $48 million for drug and alcohol recovery services, much of which were not provided, not medically necessary, lacked proper documentation or had other issues that made them ineligible for reimbursement, the government said.

The lawsuit he filed Monday in Mahoning County Common Pleas Court also names Sheridan Enterprises LLC and statutory agent James B. Dietz of Canfield as defendants.

Attempts to reach Kristin Sheridan and James Dietz for comment were unsuccessful.

Sheridan married Kristin Sheridan on Aug. 29, 2018, and granted her power of attorney over his financial affairs, the suit states. Federal officials jailed him in March 2019, after he and several associates were indicted in October 2018, according to Vindicator files.

Among his associates was his ex-wife, Jennifer Sheridan, who was sentenced to 27 months in federal prison in June 2020 for her involvement in the scheme. They jointly owe nearly $16 million in restitution to the government for the fraud.

The suit alleges that Kristin Sheridan used the power of attorney to file an amended operating agreement about Sept. 5, 2019, for Sheridan Enterprises, which Ryan Sheridan created June 13, 2016.

In December 2019, she assigned all of the partnership interest of Sheridan Enteprises to herself and on or about March 1, entered into an agreement with Angelilli Property Group resolving the amounts owed to Sheridan Enteprises at a significant discount. Kristin Sheridan then received rent credits for the Realty Towers apartments on Federal Plaza downtown, where she is living, the suit states.

Angelilli or a related entity owns Realty Towers, the suit states.

Kristin Sheridan acted for her “sole benefit, abused her power of attorney and breached her fiduciary duty owed to Sheridan Enterprises and engaged in self-dealing” that damaged Ryan Sheridan, the suit alleges.

She acted without authority and exceeded the scope of the power of attorney, the suit alleges.

The suit seeks a full accounting of all funds Sheridan Enterprises has received since Dec. 5, 2019, for a receiver to be appointed, for her to return all funds she has received, for a judge to ban her from receiving any additional funds from Sheridan Enterprises, and for the amendment to the operating agreement to be declared void.

Attorney Gregg Rossi filed the suit, which is assigned to Judge Anthony D’Apolito of Mahoning County Common Pleas Court.

Also on Monday, Sheridan filed for divorce from Kristin Sheridan in Mahoning County Domestic Relations Court.

The filing, by Rossi, realleges allegations in the other suit, saying she used the power of attorney to reorganize the structure of Sheridan Enterprises LLC for the benefit of herself and to Ryan Sheridan’s detriment. The couple has lived apart for at least a year, and Ryan Sheridan seeks to have the court order all of his interests in Sheridan Enterprises and RSKS Property Group LLC awarded to him, “free and clear of any claims of defendant Kristin M. Sheridan,” the suit states.

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