Former Medical Supply Owner’s Bankruptcy Dispute: $800K Debt in Question

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A creditor of Hunter Matthew Burroughs, the former owner of a Rogers medical supply and billing company who was sentenced earlier this year to federal prison, doesn’t want the $800,000 he owes to be discharged from his bankruptcy.

If you missed it, on Jan. 25, just two days after Burroughs was sentenced to four years in federal prison for his role in a billing and kickback fraud scheme, he filed for Chapter 7 bankruptcy liquidation.

His sentence also included three years of probation and he was ordered to pay $3.5 million in restitution. Burroughs also had to forfeit $4.02 million.

In his bankruptcy filings, the 44-year-old listed $10.6 million in debt and $3.4 million in assets.

The main asset is his five-bedroom, four-and-a-half bath, 4,850-SF home in Rogers that was valued at $1.6 million, but he owes about $800,000 on it.

Before filing for bankruptcy on Jan. 25, Burroughs had been a medical waste manager for National Medical Waste of Springdale for about two-and-a-half years, according to his filing.

His monthly gross wages were $4,333. Burroughs reported that the business began operating in 2021, and he owned 75% of the company.

In 2023, his gross income was $36,000. But in 2022, it was a whopping $1.3 million from operating businesses and his wages. In 2022, he also sold his Colorado home for $1.9 million.

Last month, a creditor, GPB Debt Holdings II LLC, assignee of Health-Right Discoveries Inc. of Miami, filed a complaint in Burroughs’ lawsuit to prevent him from discharging the $800,000 he owes the company.

GPB Debt said the debt shouldn’t be discharged because a judge in Florida found that Burroughs had committed fraud with respect to his dealings with Health-Right Discoveries in 2017.

Burroughs’ bankruptcy attorney, Stanley Bond of Fayetteville, asked U.S. Bankruptcy Judge Bianca Rucker for more time to file an answer because Burroughs is in a federal prison camp in Duluth, Minnesota. Also, Burroughs’ telephone privileges are limited.

Rucker agreed. The deadline to file a response is now Aug. 20 instead of May 22.

But in Burroughs’ bankruptcy filing he alleges that David Hopkins, the president of Health-Right Discoveries, owes Burroughs $2.5 million. That amount makes up the bulk of Burroughs’ assets.