Opinion ID: 812551
Heading Depth: 2
Heading Rank: 2

Heading: Rolla Health Care Associates (“RHCA”)

Text: One entity related to Medigroup Enterprises was Rolla Health Care Associates, L.P. (“RHCA”), a Missouri limited partnership formed in 1978 that built and operated a nursing home in Rolla, Missouri. At the time of its 1978 formation, RHCA had two partners: (1) A general partner, Rolla Health Care, Inc. (“Rolla Health Care”), which owned a 1-percent interest in RHCA; and 2 Case: 12-10620 Date Filed: 11/27/2012 Page: 3 of 17 (2) A limited partner, Medigroup, Inc. (“Medigroup Inc.”)1, which owned a 99-percent interest. Plotkin incorporated the general partner, Rolla Health Care, in 1978, and by 1987 was its president, secretary, and only board member. By 1989, Vernon Ray Lavender, a friend and coworker of Plotkin’s, had become Rolla Health Care’s sole officer and its only board member. As for the limited partner Medigroup Inc., in 1987 Plotkin was Medigroup Inc.’s president, secretary, and only board member. Plotkin also owned the stock of KSFS Investment Co. (“KSFS”), a holding corporation. At a time not clear from the record, KSFS acquired ownership of Medigroup Inc. Plotkin then sold his KSFS stock—which he estimated was worth between $100,000 and $150,000—to Lavender for $500 in 1987. By 1989 (just like with Rolla Health Care), Lavender was Medigroup Inc.’s sole officer and its only board member. In 1982, Medigroup Inc. sold its 99-percent limited partnership interest in RHCA to Lee Kling, a St. Louis businessman. Four years later, in 1986, Kling sold the same 99-percent limited partnership interest in RHCA to Health Facilities Investment Co., Ltd. (“Health Facilities”), a limited partnership formed by Plotkin. 1 Medigroup Inc. was related to, but separate from, Medigroup Enterprises. 3 Case: 12-10620 Date Filed: 11/27/2012 Page: 4 of 17 In 1990, Plotkin changed the name of Health Facilities to Autumn Years Investments, L.P (“Autumn Years”). At about the same time as the Autumn Years name change, Rolla Health Care’s 1-percent general partnership interest in RHCA was reallocated among Rolla Health Care, Medigroup Inc., and Lavender. The general partnership interests of Medigroup Inc. and Lavender were then converted to limited partnership interests. This reshuffling left Rolla Health Care with a general partnership interest in RHCA, and Medigroup Inc., Lavender, and Autumn Years with limited partnership interests in RHCA. Specifically, Autumn Years held a 99-percent limited partnership interest in RHCA.