February 1, 2006
Clayton, Mo. — An unlicensed chiropractor who abandoned his Creve Coeur practice last year owing patients more than $12,000 has been sued by Attorney General Jay Nixon. Nixon’s lawsuit, filed today in St. Louis County Circuit Court, alleges that Kenneth Lee Newhouse violated state consumer protection laws by failing to provide services that were prepaid and by failing to provide refunds to those patients.
Newhouse, who now lives in Labadie, operated a chiropractic clinic in Creve Coeur until March 2005, when he abandoned the practice. At the time, the defendant had sold prepaid treatment plans to six patients for a total of $12,162. The lawsuit asserts that Newhouse failed to perform treatment that was already paid for, failed to refund the money to his customers, and failed to make arrangements for those patients to receive services from another licensed chiropractor after he abandoned his practice.
The lawsuit also charges that the defendant provided chiropractic care to some of his patients after his license expired on March 1, 2005.
"These consumers entered into contracts with the defendant in good faith to receive chiropractic services, and instead received neither the services nor refunds when he decided to skip out on his practice and pocket the money," Nixon said. "Perhaps this action by the court will compel Mr. Newhouse to live up to his responsibilities."
Nixon is asking the court to issue an injunction against the defendant to prevent him from engaging in continued unlawful practices; to require him to provide full restitution to all consumers from whom he was paid for services; require him to pay a civil penalty to the state of up to $1,000 per violation and 10 percent of the total restitution ordered against him; and require him to pay all court, investigative and prosecution costs of the case.