Attach to Form 990 or Form 990-EZ.
Go to
www.irs.gov/Form990 for instructions and the latest information.
| (i) Name of supported organization | (ii) EIN | (iii) Type of organization (described on lines 1- 10 above (see instructions)) | (iv) Is the organization listed in your governing document? | (v) Amount of monetary support (see instructions) | (vi) Amount of other support (see instructions) | |
|---|---|---|---|---|---|---|
| Yes | No | |||||
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Total |
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Calendar year (or fiscal year beginning in) ![]() |
(a) 2015 | (b) 2016 | (c) 2017 | (d) 2018 | (e) 2019 | (f) Total | |
|---|---|---|---|---|---|---|---|
| 1 | Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grant.") .. | 6,033,887 | 338,659 | 588,868 | 4,229,457 | 4,690,656 | 15,881,527 |
| 2 | Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.... | ||||||
| 3 | The value of services or facilities furnished by a governmental unit to the organization without charge.. | ||||||
| 4 | Total. Add lines 1 through 3 | 6,033,887 | 338,659 | 588,868 | 4,229,457 | 4,690,656 | 15,881,527 |
| 5 | The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f).. | ||||||
| 6 | Public support. Subtract line 5 from line 4. | 15,881,527 | |||||
Calendar year
(or fiscal year beginning in) ![]() |
(a) 2015 | (b) 2016 | (c) 2017 | (d) 2018 | (e) 2019 | (f) Total | |
|---|---|---|---|---|---|---|---|
| 7 | Amounts from line 4.. | 6,033,887 | 338,659 | 588,868 | 4,229,457 | 4,690,656 | 15,881,527 |
| 8 | Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources... | 29,711 | 21,927 | 165,219 | 117,469 | 324,182 | 658,508 |
| 9 | Net income from unrelated business activities, whether or not the business is regularly carried on.. | ||||||
| 10 | Other income. Do not include gain or loss from the sale of capital assets (Explain in Part VI.).. | ||||||
| 11 | Total support. Add lines 7 through 10 | 16,803,760 | |||||
Calendar year (or fiscal year beginning in) ![]() |
(a) 2015 | (b) 2016 | (c) 2017 | (d) 2018 | (e) 2019 | (f) Total | |
|---|---|---|---|---|---|---|---|
| 1 | Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") . | ||||||
| 2 | Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose | ||||||
| 3 | Gross receipts from activities that are not an unrelated trade or business under section 513 ..... | ||||||
| 4 | Tax revenues levied for the organization's benefit and either paid to or expended on its behalf... | ||||||
| 5 | The value of services or facilities furnished by a governmental unit to the organization without charge | ||||||
| 6 | Total. Add lines 1 through 5 | ||||||
| 7a | Amounts included on lines 1, 2, and 3 received from disqualified persons | ||||||
| b | Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year. | ||||||
| c | Add lines 7a and 7b.. | ||||||
| 8 | Public support. (Subtract line 7c from line 6.) | ||||||
Calendar year (or fiscal year beginning in) ![]() |
(a) 2015 | (b) 2016 | (c) 2017 | (d) 2018 | (e) 2019 | (f) Total | |
|---|---|---|---|---|---|---|---|
| 9 | Amounts from line 6... | ||||||
| 10a | Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources.. | ||||||
| b | Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975. | ||||||
| c | Add lines 10a and 10b. | ||||||
| 11 | Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on. | ||||||
| 12 | Other income. Do not include gain or loss from the sale of capital assets (Explain in Part VI.) .. | ||||||
| 13 | Total support. (Add lines 9, 10c, 11, and 12.).. | ||||||
| Section A - Adjusted Net Income | (A) Prior Year |
(B) Current Year (optional) |
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| 1 | Net short-term capital gain | 1 | ||||
| 2 | Recoveries of prior-year distributions | 2 | ||||
| 3 | Other gross income (see instructions) | 3 | ||||
| 4 | Add lines 1 through 3 | 4 | ||||
| 5 | Depreciation and depletion | 5 | ||||
| 6 | Portion of operating expenses paid or incurred for production or collection of gross income or for management, conservation, or maintenance of property held for production of income (see instructions) | 6 | ||||
| 7 | Other expenses (see instructions) | 7 | ||||
| 8 | Adjusted Net Income (subtract lines 5, 6 and 7 from line 4) | 8 | ||||
| Section B - Minimum Asset Amount | (A) Prior Year |
(B) Current Year (optional) |
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| 1 | Aggregate fair market value of all non-exempt-use assets (see instructions for short tax year or assets held for part of year): | 1 | ||||
| a | Average monthly value of securities | 1a | ||||
| b | Average monthly cash balances | 1b | ||||
| c | Fair market value of other non-exempt-use assets | 1c | ||||
| d | Total (add lines 1a, 1b, and 1c) | 1d | ||||
| e |
Discount claimed for blockage or other factors (explain in detail in Part VI): |
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| 2 | Acquisition indebtedness applicable to non-exempt use assets | 2 | ||||
| 3 | Subtract line 2 from line 1d | 3 | ||||
| 4 | Cash deemed held for exempt use. Enter 1-1/2% of line 3 (for greater amount, see instructions). | 4 | ||||
| 5 | Net value of non-exempt-use assets (subtract line 4 from line 3) | 5 | ||||
| 6 | Multiply line 5 by .035 | 6 | ||||
| 7 | Recoveries of prior-year distributions | 7 | ||||
| 8 | Minimum Asset Amount (add line 7 to line 6) | 8 | ||||
| Section C - Distributable Amount | Current Year | |||||
| 1 | Adjusted net income for prior year (from Section A, line 8, Column A) | 1 | ||||
| 2 | Enter 85% of line 1 | 2 | ||||
| 3 | Minimum asset amount for prior year (from Section B, line 8, Column A) | 3 | ||||
| 4 | Enter greater of line 2 or line 3 | 4 | ||||
| 5 | Income tax imposed in prior year | 5 | ||||
| 6 | Distributable Amount. Subtract line 5 from line 4, unless subject to emergency temporary reduction (see instructions) | 6 | ||||
| Section D - Distributions | Current Year | |
|---|---|---|
| 1 Amounts paid to supported organizations to accomplish exempt purposes | ||
|
2
Amounts paid to perform activity that directly furthers exempt purposes of supported organizations, in excess of income from activity |
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| 3 Administrative expenses paid to accomplish exempt purposes of supported organizations | ||
| 4 Amounts paid to acquire exempt-use assets | ||
| 5 Qualified set-aside amounts (prior IRS approval required) | ||
| 6 Other distributions (describe in Part VI). See instructions | ||
| 7Total annual distributions. Add lines 1 through 6. | ||
|
8
Distributions to attentive supported organizations to which the organization is responsive (provide details in Part VI). See instructions |
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| 9 Distributable amount for 2019 from Section C, line 6 | ||
| 10 Line 8 amount divided by Line 9 amount | ||
| Section E - Distribution Allocations (see instructions) |
(i) Excess Distributions |
(ii) Underdistributions Pre-2019 |
(iii) Distributable Amount for 2019 |
|
|---|---|---|---|---|
| 1 Distributable amount for 2019 from Section C, line 6 | ||||
|
2
Underdistributions, if any, for years prior to 2019 (reasonable cause required-- explain in Part VI). See instructions. |
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| 3 Excess distributions carryover, if any, to 2019: | ||||
| a From 2014....... | ||||
| b From 2015....... | ||||
| c From 2016....... | ||||
| d From 2017....... | ||||
| e From 2018....... | ||||
| fTotal of lines 3a through e | ||||
| g Applied to underdistributions of prior years | ||||
| h Applied to 2019 distributable amount | ||||
|
i
Carryover from 2014 not applied (see instructions) |
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| j Remainder. Subtract lines 3g, 3h, and 3i from 3f. | ||||
| 4Distributions for 2019 from Section D, line 7: | ||||
| $ | ||||
| a Applied to underdistributions of prior years | ||||
| b Applied to 2019 distributable amount | ||||
| c Remainder. Subtract lines 4a and 4b from 4. | ||||
|
5
Remaining underdistributions for years prior to 2019, if any. Subtract lines 3g and 4a from line 2. If the amount is greater than zero, explain in Part VI. See instructions. |
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|
6
Remaining underdistributions for 2019. Subtract lines 3h and 4b from line 1. If the amount is greater than zero, explain in Part VI. See instructions. |
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7 Excess distributions carryover to 2020. Add lines 3j and 4c. |
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| 8 Breakdown of line 7: | ||||
| a Excess from 2015..... | ||||
| b Excess from 2016..... | ||||
| c Excess from 2017..... | ||||
| d Excess from 2018..... | ||||
| e Excess from 2019..... | ||||
| Facts And Circumstances Test |
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| Return Reference | Explanation |
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| Software ID: | |
| Software Version: |
Attach to Form 990 or 990-EZ.
Go to www.irs.gov/Form990 for the latest information.
| Return Reference | Explanation |
|---|---|
| PART III, LINE 3: | DUE TO SIGNIFICANT DECLINES IN SERVICES AND RELATED CONTRACTS IN THE STATE OF ARKANSAS, PFH MADE THE DECISION TO DISCONTINUE OPERATIONS IN THE STATE OF ARKANSAS SUBSEQUENT TO YEAR END. PFH TRANSFERRED OR LEASED SUBSTANTIALLY ALL OF ITS ASSETS AND OPERATIONS TO OTHER PROVIDERS OF SERVICES IN ARKANSAS SO THAT SERVICES TO CLIENTS WOULD NOT BE INTERRUPTED. THE TRANSFER AND LEASING OF THE ASSETS IN ARKANSAS IMPACTED APPROXIMATELY 45 LOCATIONS GENERATING APPROXIMATELY $50,600,000 OF NET REVENUES FOR THE YEAR ENDED JUNE 30, 2018. NOTWITHSTANDING THE LOSS OF REVENUE AND OPERATIONS IN ARKANSAS, THE ORGANIZATION HAS CONTINUED TO PROVIDE SERVICES TO CLIENTS WITHOUT INTERRUPTION THROUGH ITS REMAINING OPERATIONS IN MISSOURI, OKLAHOMA, KANSAS AND ILLINOIS. |
| FORM 990, PART VI, SECTION A, LINE 2 | TOM GOSS, CFO OF PREFERRED FAMILY HEALTHCARE INC. THROUGH 01/2018, AND BONTIEA GOSS, COO OF PREFERRED FAMILY HEALTHCARE INC. THROUGH 01/2018, HAVE A FAMILY RELATIONSHIP. |
| FORM 990, PART VI, SECTION B, LINE 11B | THE FORM 990 IS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM BASED ON THE AUDITED FINANCIAL STATEMENTS AND INFORMATION PROVIDED BY THE ACCOUNTING DEPARTMENT OF THE ORGANIZATION. A COPY OF THE FORM 990 WAS DELIVERED TO ALL BOARD MEMBERS FOR REVIEW AND APPROVAL PRIOR TO SIGNING AND FILING. |
| FORM 990, PART VI, SECTION B, LINE 12C | PREFERRED FAMILY HEALTHCARE, INC. HAS A CONFLICT OF INTEREST POLICY TO PROTECT ITS INTEREST WHEN CONTEMPLATING ENTERING INTO A TRANSACTION OR ARRANGEMENT THAT MIGHT BENEFIT THE PRIVATE INTEREST OF A DIRECTOR OR AN OFFICER OF THE ORGANIZATION OR THAT MIGHT RESULT IN A POSSIBLE EXCESS BENEFIT TRANSACTION. ANNUALLY, ALL BOARD MEMBERS COMPLETE A CONFLICT OF INTEREST STATEMENT DISCLOSING ANY POSSIBLE SOURCES OF CONFLICT. THESE POTENTIAL CONFLICTS ARE PRESENTED AT A BOARD MEETING WITH THE INTERESTED PARTY BEING EXCUSED FROM THE ROOM. THE REMAINING BOARD MEMBERS DELIBERATE THE ISSUES AND DETERMINE WHETHER THE TRANSACTION IS ACCEPTABLE TO THE ORGANIZATION. |
| FORM 990, PART VI, SECTION B, LINE 15 | AN INDEPENDENT BOARD COMPENSATION COMMITTEE PERFORMED A REVIEW OF COMPENSATION FOR THE CEO, CFO AND CERTAIN OTHER INDIVIDUALS AND OFFICERS IN 2018. THE REVIEW WAS BASED ON A REPORT FROM AN INDEPENDENT, NATIONALLY RECOGNIZED COMPENSATION CONSULTING FIRM, WHICH COMPARED THE COMPENSATION OF THE POSITIONS WITH SIMILAR POSITIONS AT COMPARABLE ORGANIZATIONS. THE REPORT DEMONSTRATED THAT THE COMPENSATION PAID WAS REASONABLE. |
| FORM 990, PART VI, SECTION C, LINE 19 | THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. |
| FORM 990, PART XII, LINE 2C: | THE FINANCE COMMITTEE ASSUMES THE RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND SELECTION OF AN INDEPENDENT ACCOUNTANT, THE BOARD OF DIRECTORS OVERSEES THE DECISIONS OF THE FINANCE COMMITTEE. THIS PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. |
| SCHEDULE L, PART I - EXCESS BENEFIT TRANSACTIONS | LISTED BELOW ARE TRANSACTIONS OCCURRING DURING THE PERIOD FROM JULY 1, 2017 THROUGH JUNE 30, 2018 (THE "REPORTED PERIOD") THAT ARE EITHER REPORTED ON SCHEDULE L AS EXCESS BENEFIT TRANSACTIONS OR DISCLOSED AS SUPPLEMENTAL INFORMATION ON SCHEDULE O AS POTENTIAL EXCESS BENEFIT TRANSACTIONS, PENDING FURTHER REVIEW. WHERE STATED, THE TRANSACTIONS MAY ALSO HAVE OCCURRED OR BEEN INITIATED PRIOR TO THE REPORTED PERIOD AND HAVE BEEN PREVIOUSLY REPORTED ON PRIOR FORM 990S. 1. THE FOLLOWING ARE TRANSACTIONS REPORTABLE ON SCHEDULE L AS EXCESS BENEFIT TRANSACTIONS DURING THE REPORTED PERIOD WHERE THE AMOUNT OF THE EXCESS BENEFIT IS ASCERTAINABLE BY PFH: A. PERSONAL ASSISTANT FOR BONTIEA GOSS AND/OR TOM GOSS. DURING THE REPORTED PERIOD AND BEFORE, AN EMPLOYEE ON THE PAYROLL OF PFH WAS LIVING IN BOULDER, COLORADO AND APPEARS TO HAVE BEEN PERFORMING ODD JOBS AND PERSONAL SERVICES FOR BONTIEA GOSS AND TOM GOSS. THE INDIVIDUAL PERFORMING THE SERVICES WAS NOT PERFORMING ANY SERVICES FOR AO/PFH. THE SALARY AND BENEFITS FOR THIS INDIVIDUAL DURING THE REPORTED PERIOD TOTALED APPROXIMATELY $16,771. THERE IS NO DOCUMENTATION EVIDENCING APPROVAL OR AUTHORIZATION OF THIS ARRANGEMENT BY THE GOVERNING BODY OF PFH. MR. AND MRS. GOSS WERE SENIOR EXECUTIVES OF PFH UNTIL THEIR EMPLOYMENT WAS TERMINATED BY PFH IN EARLY 2018. PFH HAS INITIATED LITIGATION AGAINST MR. AND MRS. GOSS IN AN ATTEMPT TO RECOVER THE AMOUNT OF THE EXCESS BENEFIT. B. TRANSACTIONS WITH PRO1: I. BONTIEA GOSS, TOM GOSS AND JEFF EDGAR (BONTIEA GOSS'S BROTHER) COLLECTIVELY OWN MORE THAN 35% OF PRO1, AN ENTITY WHICH SELLS THERMOSTATS. DURING THE REPORTED PERIOD AND BEFORE, PRO1 MAINTAINED AN OFFICE AT 1111 SOUTH GLENSTONE, IN SPRINGFIELD, MISSOURI, A BUILDING OWNED BY PFH. THE SQUARE FOOTAGE OCCUPIED BY PRO1 WAS APPROXIMATELY 500 SQ/FT. DURING THE REPORTED PERIOD, THIRD PARTY TENANTS LEASING SPACE AT THIS BUILDING HAVE PAID AN AVERAGE RENT PER SQUARE FOOT APPROXIMATING $14.79. USING THIS AVERAGE, MANAGEMENT ESTIMATES PRO1'S RENT DURING THE REPORTED PERIOD SHOULD HAVE BEEN $616.25 MONTHLY FOR SPACE IN THE BUILDING WHEN IN FACT PRO1 PAID $250 PER MONTH. THE DIFFERENCE IN RENT PAID DURING THE REPORTED PERIOD, LESS THE RENT ACTUALLY PAID BY PRO1, RESULTS IN $733 OF UNDERPAID RENT THAT CONSTITUTED AN EXCESS BENEFIT TRANSACTION TO PRO1. THERE IS NO LEASE OR OTHER DOCUMENTATION EVIDENCING APPROVAL OR AUTHORIZATION OF THIS ARRANGEMENT BY THE GOVERNING BODY. PFH INTENDS TO SEEK RECOVERY OF THIS AMOUNT FROM PRO1 PLUS INTEREST. 2. THE FOLLOWING ARE OTHER TRANSACTIONS DURING THE REPORTED PERIOD WHICH MAY OR MAY NOT BE EXCESS BENEFIT TRANSACTIONS, BUT WHICH ARE BEING DISCLOSED ON SCHEDULE O: A. TRANSACTIONS WITH PRO1: PFH PAID PRO1 ALLEGEDLY FOR THE AGREEMENT OF PRO1 TO EMPLOY CERTAIN INDIVIDUALS INVOLVED IN THE PFH WORKFORCE DEVELOPMENT PROGRAMS WHO SPENT TIME WORKING AT A PRO1 WAREHOUSE DURING THE REPORTED PERIOD AND BEFORE. PFH IS UNABLE AT THIS TIME TO DETERMINE HOW MANY PEOPLE WERE BEING TRAINED OR THE TRAINING THEY RECEIVED AT THE PRO1 FACILITY. THE TOTAL AMOUNT PAID FROM PFH TO PRO1 DURING THE REPORTED PERIOD AMOUNTED TO $6,000. THERE ARE MINUTES OF A MEETING OF THE GOVERNING BODY EVIDENCING A DISCUSSION OF THIS RELATIONSHIP, BUT PFH IS UNABLE AT THIS TIME TO DETERMINE THE EXTENT OF SERVICES PROVIDED BY PRO1 TO PFH AND IS THEREFORE UNABLE TO DETERMINE WHETHER THE PAYMENT TO PRO1 WAS AT FAIR MARKET VALUE. MS. GOSS AND MR. GOSS WERE THE EXECUTIVES OF AO WHO AUTHORIZED THE AGREEMENT WITH PRO 1. THEIR EMPLOYMENT WITH PFH WAS TERMINATED IN EARLY 2018. B. TOM GOSS EMPLOYMENT: MR. GOSS IS THE FORMER CFO OF AO AND SUBSEQUENT TO THE MERGER OF AO INTO PFH, BECAME THE CFO OF PFH. AO/PFH ASSUMED THAT MR. GOSS WAS WORKING FULL TIME ON AO/PFH MATTERS. HOWEVER, PFH HAS BECOME AWARE THAT DURING THE REPORTED PERIOD AND BEFORE MR. GOSS MAY HAVE BEEN PROVIDING SERVICES FOR HIS OWN BUSINESS AND/OR THE BUSINESS OF ENTITIES OTHER THAN PFH. PFH IS NOT AT THIS TIME IN POSSESSION OF INFORMATION SUFFICIENT TO VERIFY THE AMOUNT OF TIME MR. GOSS WORKED FOR HIMSELF OR OTHERS AND IS THEREFORE UNABLE TO VERIFY THE AMOUNT OF HIS PFH COMPENSATION THAT MAY HAVE CONSTITUTED AN EXCESS BENEFIT TO MR. GOSS. MR. GOSS' EMPLOYMENT WAS TERMINATED BY PFH IN EARLY 2018. C. CREDIT CARD "MILES" FOR TOM GOSS: DURING THE REPORTED PERIOD AND BEFORE, MR. GOSS USED HIS PERSONAL CREDIT CARD TO PURCHASE PRODUCTS AND SERVICES FOR PFH AND WAS REIMBURSED BY PFH FOR EACH DOLLAR SPENT. DURING THE REPORTED PERIOD, THE AMOUNT REIMBURSED TO MR. GOSS WAS APPROXIMATELY $146,232. MR. GOSS RETAINED ALL BENEFITS (IN THE FORM OF AIRLINE MILEAGE, ETC.) RESULTING FROM SUCH CHARGES. PFH IS UNABLE TO DETERMINE THE VALUE TO MR. GOSS OF ANY SUCH BENEFITS. IF THE RETENTION OF THE BENEFITS BY MR. GOSS CONSTITUTES AN EXCESS BENEFIT TRANSACTION, AND IF PFH IS ABLE TO DETERMINE THE VALUE THEREOF, PFH WILL SEEK RECOVERY OF THE VALUE OF THOSE BENEFITS PLUS INTEREST. MR. GOSS'S EMPLOYMENT WITH PFH WAS TERMINATED IN EARLY 2018. D. CERTAIN EMPLOYEES: DURING THE REPORTED PERIOD AND BEFORE, THE FOLLOWING RELATIVES OF DISQUALIFIED PERSONS RECEIVED COMPENSATION AS EMPLOYEES OF PFH. PFH IS EITHER UNABLE TO VERIFY THAT THEY PERFORMED ANY WORK FOR THE COMPANY, OR IS AWARE THAT THEY DID PERFORM SOME WORK BUT THE AMOUNT PERFORMED WAS NOT COMMENSURATE WITH THE COMPENSATION RECEIVED. IF PFH IS ABLE TO OBTAIN INFORMATION CONFIRMING THAT AN EXCESS BENEFIT TRANSACTION DID OCCUR, PFH WILL SEEK RECOVERY OF THE AMOUNT FROM THE DISQUALIFIED PERSON PLUS INTEREST. BECKY NOLAN (SISTER OF DISQUALIFIED PERSON MARILYN NOLAN) RECEIVED COMPENSATION FROM PFH FOR PROVIDING FOOD FOR MONTHLY BOARD MEETINGS OF PFH. PFH TERMINATED THE EMPLOYMENT OF MS. NOLAN IN JANUARY 2018. E. BASEBALL TICKETS: DURING THE REPORTED PERIOD AND BEFORE, AO/PFH PURCHASED, AND MADE AVAILABLE TO DISQUALIFIED PERSONS, SEASON TICKETS TO BASEBALL GAMES. AT THIS TIME, AO/PFH DOES NOT HAVE ADEQUATE RECORDS AVAILABLE TO DETERMINE WHETHER THE USE BY THE DISQUALIFIED PERSONS CONSTITUTES AN EXCESS BENEFIT. 3. THE FOLLOWING TRANSACTIONS ARE POTENTIAL EXCESS BENEFIT TRANSACTIONS THAT HAVE NOT BEEN DISCLOSED ON PRIOR 990S AND OCCURRED PRIOR TO THE REPORTED PERIOD: A. CERTAIN TRANSACTIONS ALLEGED IN INDICTMENT OF FORMER EXECUTIVES: THE FOLLOWING TRANSACTIONS WERE DESCRIBED IN A FEDERAL GRAND JURY INDICTMENT OF TWO FORMER EXECUTIVES, MR. AND MRS. GOSS. THESE TRANSACTIONS OCCURRED PRIOR TO THE REPORTED PERIOD, BUT PFH ONLY BECAME AWARE OF THESE TRANSACTIONS THROUGH THE INDICTMENT, WHICH WAS FILED ON MARCH 29, 2019. PFH IS UNABLE TO DETERMINE WHETHER OR NOT THESE TRANSACTIONS CONSTITUTE EXCESS BENEFIT TRANSACTIONS TO DISQUALIFIED PERSONS. IF PFH IS ABLE TO OBTAIN INFORMATION CONFIRMING THAT AN EXCESS BENEFIT TRANSACTION DID OCCUR, PFH WILL SEEK RECOVERY OF THE AMOUNT FROM THE DISQUALIFIED PERSON PLUS INTEREST. I. IT HAS BEEN ALLEGED THAT MR. AND MRS. GOSS DIRECTED PAYMENTS FROM PFH AND ITS PREDECESSORS, TO A PERSONAL ASSISTANT, (IN ADDITION TO THE PERSONAL ASSISTANT REFERRED TO IN PARAGRAPH 1A OF SCHEDULE L) WHO WAS PROVIDING PERSONAL SERVICES TO MR. AND MRS. GOSS. THESE PAYMENTS WERE MADE PRIOR TO THE CURRENT REPORTED PERIOD; HOWEVER, IF PFH IS ABLE TO OBTAIN INFORMATION CONFIRMING THAT AN EXCESS BENEFIT TRANSACTION DID OCCUR, PFH WILL SEEK RECOVERY OF THE AMOUNT FROM THE DISQUALIFIED PERSON PLUS INTEREST. II. PRIOR TO THE REPORTED PERIOD, PFH AND ITS PREDECESSORS MADE PAYMENTS TO THE ALLIANCE FOR HEALTH IMPROVEMENT, INC. FOR MEMBERSHIP DUES. IT HAS BEEN ALLEGED THAT THIS ENTITY WAS OWNED AND/OR BENEFITED CERTAIN DISQUALIFIED PERSONS, AND THE DUES MAY CONSTITUTE AN EXCESS BENEFIT TRANSACTION IF PFH DID NOT RECEIVE FAIR MARKET VALUE SERVICES IN RETURN FOR THE DUES PAID. IF PFH IS ABLE TO OBTAIN INFORMATION CONFIRMING THAT AN EXCESS BENEFIT TRANSACTION DID OCCUR, PFH WILL SEEK RECOVERY OF THE AMOUNT FROM THE DISQUALIFIED PERSON PLUS INTEREST. |
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| Software Version: |