YOUNGSTOWN — Ryan P. Sheridan, the imprisoned former owner of Braking Point Recovery Center in Austintown, attended his divorce hearing Monday by video from the federal prison where he is serving a 7 1/2 year prison sentence.

Sheridan, 42, asked courts, in his divorce filing and separate lawsuit in August 2021, that his wife Kristin Sheridan M. Sheridan be ordered to return funds she transferred out of his company, Sheridan Enterprises, through the use of a power of attorney he authorized. This was before he was sentenced for committing $24.5 million in Medicare fraud Jan. 22, 2020.

Ryan Sheridan and his first wife, Jennifer Sheridan, were both ordered to pay restitution of $16 million to the government for the frauds committed by the company. She was sentenced to 27 months in federal prison in June 2020 for her involvement in the scheme.

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.

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

DIVORCE CASE

Sheridan filed for divorce from her 13 months ago. They have no children together. On Monday, Magistrate Thomas Dawson of Mahoning County Domestic Relations Court heard testimony in the divorce case.

Ryan Sheridan’s attorney, Mark Kolmacic, showed Kristin Sheridan dozens of document while questioning her in a small courtroom in the Mahoning County Courthouse about the steps she took to liquidate her husband’s assets.

The couple married Aug. 29, 2018, and Ryan Sheridan granted her power of attorney over his business and personal financial affairs July 2, 2019, after he was in prison, she testified. He was sent to prison in January 2020 after he and several employees were indicted in October 2018. He created Sheridan Enterprises in June 2016, before they were married.

He is presently an inmate at the Federal Medical Center in Lexington, Ky., which has a minimum security prison.

MONEY

Kolmacic asked her about a document called a promissory note that indicates Angelilli Property Group, which runs the Realty Towers apartments downtown, owed Sheridan Enterprises $200,000. It was dated March 1, 2018, Kristin Sheridan agreed.

“So this is an obligation to Ryan Sheridan by Brian Angelilli, originally it was $200,000?” Kolmacic asked.

She agreed it is, and she agreed that the document was signed before she and Ryan Sheridan were married.

Ryan Sheridan’s lawsuit alleged that she then received rent credits that she used at the Realty Towers apartments on Federal Plaza downtown, where she is living, the suit states.

Kolmacic showed her a document that added her as a 50 percent member of Sheridan Enterprises. She had it filed with the Ohio Secretary of State’s Office, she agreed. She signed it as her husband’s power of attorney, she agreed.

On Sept. 25, 2019, she used the power of attorney to grant herself the other 50 percent of Sheridan Enterprises, she agreed.

When Kolmacic asked if she gave Ryan Sheridan any money in exchange for giving herself these shares of Sheridan Enterprises, she hesitated and did not answer right away.

“I don’t know,” she finally said.

At one point, Giannini pointed out that he was not allowed to advise his client how to answer questions during the trial.

Another document indicated that Kristin Sheridan signed a memorandum of understanding with Angelilli that paid her the money owed by Angelilli. That took place March 3, 2021, after Ryan Sheridan was in federal prison, she agreed.

Other documents related steps she took to sell a 2008 Yamaha motorcycle for $800 and a 1999 Harley Davidson motorcycle for $3,000, both of which had belonged to Ryan Sheridan, and she did it by using the power of attorney, she agreed.

She agreed that the Kelly Blue Book value of the Harley Davidson was $6,950. She added, however, there were “a lot of issues” with the sale that she did not discuss.

There also were documents related to several properties that had belonged to Ryan Sheridan that she sold.

The civil suit is still pending before Judge Anthony D’Apolito of Mahoning County Common Pleas Court.

The hearing resumes today.