McLean, Va.-based VitalSpring Technology, which provides data analysis and services related to healthcare expenditures, and its subsidiary Enziime have filed for Chapter 7 bankruptcy, according to the Washington Business Journal.
The companies entered bankruptcy about six months after VitalSpring CEO Sreedhar Potarazu, MD, pleaded guilty to $32 million in shareholder fraud and $7.5 million in employment tax fraud.
VitalSpring and Enziime said in their bankruptcy petitions they have estimated combined liabilities of $65 million, which the companies owe to more than 350 creditors. The creditors, including several physicians and investment groups, are investors in the companies. The companies reported less than $50,000 in combined assets, according to the report.
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