Receiver Appointed in Quapaw House Case

Receiver Appointed in Quapaw House Case
Quapaw House, seen here on Grand Avenue in Hot Springs, owed $1.9 million for unpaid payroll taxes in 2019. It also is also being sued by employees who haven’t been paid recently. (Google Maps)

A receiver was appointed last week to take control of the troubled Quapaw House Inc. of Hot Springs.

The Levi Hospital System was named Tuesday as the receiver and will be paid a flat monthly fee of $50,000, according to court documents filed in Garland County Circuit Court.

As Arkansas Business reported last week, Malvern National Bank requested the receiver. In court filings, the bank accused Quapaw House of misrepresenting its financial condition in order to get loans last year, and demanded the immediate repayment of $1.5 million.

If you recall, Quapaw House, which provides alcohol and drug treatment services, acquired the Arkansas assets of scandal-plagued Preferred Family Healthcare a year and a half ago, after multiple PFH executives — including Rusty Cranford of Rogers — were convicted of embezzlement and corruption.

The nonprofit center is also facing a federal lawsuit by a midlevel manager who is seeking class-action status for about 200 employees who haven’t been paid since February.

As of Thursday morning, Quapaw House hadn’t responded to that suit.