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D.C. Mental Health Provider Bankrupt

May 28, 1996

WASHINGTON (AP) _ One of the District of Columbia’s largest providers of care for the mentally ill, paid $4 million a year by the cash-strapped city, has been ordered out of business by a federal bankruptcy judge.

JMC Associates Inc., whose senior management included John Clyburn, a longtime friend of Mayor Marion Barry, defaulted on services for hundreds of clients under its care, according to papers filed in federal bankruptcy court last week.

The D.C. Commission on Mental Health also has canceled some of the company’s contracts, and it was trying to transfer about 90 JMC clients to new group homes, a spokeswoman said Tuesday.

The commission’s decision to cancel existing contracts amounted to a ``personal vendetta″ against her, said JMC president Carla Burrell.

Court papers cited in a Washington Post story said the company owes $237,000 in taxes to the district and $561,000 to the federal government.

JMC also was accused of neglecting to pay bills on the group homes for the mentally retarded that it managed on the city’s behalf. And it failed to provide proper therapy, social work and housing for men and women who suffer from severe psychiatric disorders, the court papers said.

Several landlords, some of whom are owed tens of thousands of dollars, have begun eviction proceedings aimed at removing JMC clients from their properties.

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