Ensi-Med CEO tries it again

By Tim Trainor - 12/02/2008

The chief executive officer of a failed company that did not pay some of its Butte employees is attempting to restart the business in Louisiana.

Benjamin McGainey is the CEO of Ensi-Med International, a telemedicine start-up that attempts to connect patients and doctors through video phone conferencing. In 2007, the company located in the Thornton Building, 65 E. Broadway St., and had plans to hire nearly 150 employees.

Less than a year later the company was belly-up — with employees filing multiple claims for unpaid wages and local businesses holding unpaid bills.

McGainey, apparently, has moved on.

Last week he made a pitch to the Mansfield, La., city council seeking a partnership with the city, population 5,500, and a building in which he could relocate his business. Mansfield is located about 30 miles south of Shreveport.

He spoke with a newspaper reporter with "The Shreveport Times," acknowledging his problems in Butte, but refusing to elaborate, the newspaper reported.

He also admitted to a 2001 arrest in Australia, where he was the director of a sports management company and accused of stealing more than $74,000 Australian dollars from a basketball team and illegally obtaining more than $500,000 Australian dollars in credit. He said those issues had been resolved.

The company's legal obligations in Montana are still being sorted out.

At a hearing in February, the Montana Department of Labor and Industry ruled that Ensi-Med owed four employees more than $80,000 in back wages.

Ensi-Med's global financial officer Joe Michaud appealed the labor department's ruling, admitting to owing most of the money, but disputing some $20,000 awarded to one employee. Michaud said the employee quit a month earlier than he claims.

Ensi-Med also appealed because it contended the company was not being represented by a lawyer, although the court said it had informed Michaud three months earlier that it needed to find one. Michaud claimed he was unable to retain the services of a lawyer, according to court documents.

Because of the appeal, the hearing must be sent to Butte district court, but as of Monday that had not been done.

The court has a lien of more than $7,000 on McGainey due to unpaid taxes.

Things were not always so dreary for Ensi-Med. Its arrival in Butte was marked by a grand opening at the Old Works Golf Course in Anaconda and a speech by celebrated doctor Patch Adams.

Things quickly unraveled, however, when several "large contracts" McGainey said would be signed fell through and employee's checks started to bounce.

A city clerk in Mansfield confirmed the city had been approached by McGainey. She said they are "aware" of his background, but refused to comment further. Mayor Curtis McCoy did not return calls seeking comment.

The Mansfield council will meet Dec. 8 to decide whether to put McGainey back on the agenda and consider the proposal.

— Reporter Tim Trainor can be reached at tim.trainor@lee.net.