Mountain Top Media
Judge orders bank-level freeze on segregated ARC account
MANHATTAN — A federal judge has now tightened the freeze on the bulk of Addiction Recovery Care’s cash, following a contempt hearing Thursday in New York.
The dispute centers on Angelica Capital Trust’s advance of $5.4 million to ARC back in November, with the agreement that ARC would turn over an $8.1 million in tax refunds from Employee Retention Credits as repayment. However, Angelica says ARC kept and spent the money instead, defaulting on the loan.
ARC has not disputed that it owes the money.
Angelica claims ARC is on the verge of financial collapse as it scrambles to come up with $27.7 million to settle a U.S. Department of Justice investigation into the company for Medicaid and Medicare fraud.
On Jan. 13, U.S. District Judge George B. Daniels issued a temporary restraining order prohibiting ARC from allowing its bank account to dip below $10 million. However, after that order, ARC transferred money out of its account to its subsidiaries, resulting in Angelica filing an amended petition for an injunction, adding the subsidiaries to the action.
ARC responded that it was impossible to comply with the judge’s order, as the company had less than $10 million in its account when the order was issued. ARC also produced bank records showing the company had just $5.7 million as of Jan. 19.
On Jan. 22, Judge Daniels granted a preliminary injunction segregating $4.7 million, representing the bulk of ARC’s stated cash balance, into a frozen account. He allowed the company to keep $1 million to cover daily expenses that was expected to last until the expected sale of the company Feb. 4.
But on Jan. 25, Angelica attorney Anthony Candido wrote a letter to Judge Daniels alleging another violation of the judge’s orders.
“Respondents [ARC] transferred or spent $2.1 million from their accounts withing two days after the hearing (and may have transferred more since),” Candido wrote. “This is the second time respondents have violated Your Honor’s orders and we are deeply concerned they will continue to do so.”
In a memorandum opposing a finding of contempt filed Wednesday, ARC responded that it has made every effort to comply with the judge’s order. But the company claims between Jan. 19, when the company provided a snapshot of its account balance to the court, and Jan. 22, when the injunction was granted, $1.35 million was automatically deducted from the account for payroll, and nearly $1.4 million more in “critical operating expenses” such as utilities, food and medicine also had to be paid. However, ARC said it convinced the intended buyer of the company — identified as California-based Emend Healthcare in Candido’s letter — to advance $1.3 million of the purchase price to bring the frozen account back up to $4.7 million.
On Thursday, Judge Daniels issued an order not only reiterating that ARC is not to transfer any money from the segregated account, but also ordering the bank, Truist, not to allow any transfers without a court order while the case remains pending. He also ordered ARC to provide Angelica’s attorneys with the account balance each business day, “to ensure the funds have not been dissipated.”
Judge Daniels has not issued any orders regarding a request from ARC’s attorneys to withdraw from the case, saying they had become aware ARC was “insistent upon taking actions with which we have a fundamental disagreement,” and had “failed to cooperate in the representation and rendered the representation unreasonably difficult.”
The judge also has not taken action on a motion from a second company, Clear Cove Opportunities Fund I, to intervene in the case, alleging ARC sold them the same tax credits that the company had sold to Angelica.
Previous coverage of this story and relevant court documents can be found at the following links:
- Creditor seeks to freeze Addiction Recovery Care’s finances, Jan. 22, 2026
- Judge orders freeze of nearly all ARC assets, Jan. 23, 2026
- Attorneys ask to withdraw, as ARC faces contempt hearing Thursday, Jan. 27, 2026
- Court filing claims ARC sold disputed tax receivables twice, Jan. 29, 2026
Attached below are Candido’s letter, an email attachment accompanying his letter, ARC’s opposition to a contempt finding, and Judge Daniels’ order for ARC and Truist not to cause any money to be transferred from the segregated account.
The post Judge orders bank-level freeze on segregated ARC account appeared first on Mountain Top Media.
MOREHEAD: Alford, Afari Pick Up Three More OVC Weekly Honors
PRESS RELEASE: MOREHEAD STATE ATHLETICS
MOREHEAD, Ky. – The awards keep piling up for the Morehead State track and field team, specifically Ohio Valley Conference Athlete of the Week awards.
Based on their performance at last Friday’s PNC Bank Bellarmine Classic, the Eagles picked up three more accolades on Wednesday, the league office announced.
Kennedi Alford earned her first career Track Athlete of the Week honor and her second Freshman of the Week recognition, having previously shared the award two weeks ago. Sam Afari earned his second Freshman of the Week honor, to join the one he collected on January 14, as the Eagles have now claimed six OVC weekly awards over just three weeks of competition.
It is beginning to sound like a broken record, an ironic choice of words, since once again Alford set another school record, while Afari was part of a relay that was MSU’s fastest in 46 years, as both excelled at Friday’s 14-team meet.
It was just part of an overall outstanding performance for the Blue and Gold, which had at least one top-seven finish in 12 of its 15 events, and included 22 top-10 finishes out of 48 total entries, all while setting 16 “pr’s” and tying another. Outside of the two relays, only two events in which MSU was entered were there fewer than 20 competitors, and in eight of the others, there were 29 or more. The Eagles won 12 heats.
Although limited records exist, it is likely that six OVC Athlete of the Week honors in one season, let alone over just three weeks, ranks as the Eagles’ best accomplishment in the history of the awards.
Prior to this winter, MSU indoor track and field athletes have won OVC weekly awards just seven times over the last five years.
In the opening week of the season, Kalynn Pease was named the Freshman of the Week. Two weeks ago, Afari was the Freshman of the Week and Alford was the co-Freshman of the Week.
Considering the trajectory, could four OVC weekly awards be in store after MSU’s next meet?
“Back-to-back weeks that Sam and Kennedi received accolades for their strong performances is only proof of the work that they’ve been diligently putting in!” said MSU sprints and jumps coach Rob Springfield. “They’ve put in the work and now they are reaping the rewards. Our eyes are locked on the goal: OVC Championships on Feb 24-25!”
Alford set three “pr’s” in three races, including breaking the school record for the second straight week in the 60-meter dash. This time, she posted a winning mark of 7.64 (.04 faster than last week). She also won the 200-meter dash in 24.79, the second-fastest time in school history and just the second to go under 25 seconds.
Running the third leg of the 4×400-meter relay (that also included sophomore Olivia Miles, sophomore Maryah Counts and Pease), she took the team from third to first, before it finished second in 3:59.40 in MSU’s fourth-fastest time ever. The winning time was just 52-hundredths of a second quicker.
In Division I, she is currently ranked 230th in the 200m, 331st in the 60m and 368th in the 4x400m. In the OVC, she sits second in both the 200m and 4x400m, and tied for third in the 60m.
“Kennedi won both the 60m and the 200m with very solid times breaking the school record again in the 60m and setting a new season’s best in the 200m,” said Springfield. “She has done an excellent job carrying this momentum all season and taking advantage of every chance she gets to dominate!”
Her marks currently rank first all-time at MSU in the 60m, second in the 200m and fourth in the 4x400m.
See Alford discuss her awards on MSU’s YouTube channel.
Afari ended the day at the meet with one title and two runner-up performances. He won his heat and finished second overall in the 400m in 49.57, the best time and first sub-50-second race for an Eagle in 12 years. He followed by claiming the 200m in 21.91 for his first collegiate victory.
Afari ran a leg of the men’s 4x400m relay that included freshman Kyle Stepteau, freshman Jayce Stewart and freshman Kyler Witt that finished second in 3:22.21, just 46-hundredths of a second out of first and the fastest for an MSU foursome in 46 years.
Nationally, he ranks 169th in the 200m, 296th in the 400m and 271st in the 4x400m. In the OVC, he is third in the 200m, sixth in the 400m and fourth in the 4x400m.
“Sam pulled off a difficult double this weekend, running the 400m followed by the 200m! He set a new season’s best in the 400m, finishing second overall, and followed that with a strong performance in the 200m, finishing first overall! A very solid performance from Sam this weekend!”
At MSU, he owns the school record in the 300-meter dash (34.94). He also is third on the list in the 400m, fourth in the 200m (with a time of 21.75) and second in the 4x400m relay.
Watch Afari talk about his second straight Freshman of the Week honor on MSU’s YouTube channel.
Joining Alford and Afari as award winners were Eastern Illinois’ Nathan Kirby (Male Track Athlete of the Week), Sam Bradbury (Male Field Athlete of the Week) and Layla Bonilla (Female Field Athlete of the Week). Afari was MSU’s nomination for Male Track Athlete of the Week. Morehead State did not submit any names for either of the field awards.
The Eagle pair will be back in action, along with the rest of the team in Friday and Saturday’s PNC Lenny Lyles Invitational at the Norton Healthcare Sports & Learning Center in Louisville, Ky.
The post MOREHEAD: Alford, Afari Pick Up Three More OVC Weekly Honors appeared first on Mountain Top Media.
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