State Asks Judge To Freeze HRC Owners' Accounts - NewsChannel5.com | Nashville News, Weather & Sports

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State Asks Judge To Freeze HRC Owners' Accounts

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by Jennifer Kraus
Consumer Investigator

NASHVILLE, Tenn. - The state asked a judge to freeze the assets and personal accounts of the owners of HRC Medical and their wives, as well as the finances of the former HRC clinics in Tennessee and two dozen other states on Friday.

Friday's hearing came after the state accused brothers Dan and Don Hale and their wives of raiding HRC's accounts and helping themselves to nearly $2 million.

The state also alleged the Hales transferred the company's assets to HRC insiders to hide them from state prosecutors.

Attorneys for the state said they want to use HRC's money to compensate former patients who suffered health problems from HRC's hormone replacement therapy as NewsChannel 5 Investigates first reported.

Last fall, the Attorney General sued the company for failing to warn patients of the risks.

In court Friday, attorneys for the Hales argued that freezing their personal accounts would be a drastic and extreme measure.

They also said the money the Hales received from the company was not used for personal gain, but rather used to pay taxes.

Meanwhile, attorneys for the former HRC clinics maintained they played no role in the alleged conspiracy and said freezing their assets would essentially force the clinics, including the Nashville office, out of business.

The judge said she would consider both sides' arguments and would issue her ruling on Tuesday.

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