Truth Squad: Shri Thanedar deflects blame for dire stories on lab animals

This little guy was one of 173 dogs and monkeys rescued from a bankrupt New Jersey testing laboratory in 2010. Shri Thanedar says he did everything possible to protect the animals and blames the lab’s creditors for the animals’ plight.

The face of Shri Thanedar ‒ scientist, entrepreneur and one of four Democratic candidates for Michigan governor ‒ is becoming familiar to voters thanks to more than $1.2 million in TV ads bankrolled by part of the $6 million he has donated to his campaign. It’s been enough to put him in a slight lead over former Senate Minority Leader Gretchen Whitmer in a recent poll by the Detroit Regional Chamber.

Related: Truth Squad rating categories
Related Truth Squad: Thanedar vows to stop for-profit charters, DeVos

But Thanedar has come under unflattering scrutiny for reports that in 2010 a New Jersey pharmaceutical firm he owned that went bankrupt allegedly abandoned scores of research animals, which had to be rescued by animal welfare groups. A typical headline: “Shri Thanedar's company abandoned more than 170 dogs and monkeys.”

Thanedar has labeled the accusations a media smear and blames the  creditor in the bankruptcy for whatever unpleasantness lab animals’ went through at the time.

The reports amount to a character test: What responsibility does Thanedar bear for what happened to hapless test animals at the lab? And is there support for his statement that he’s the victim of a smear campaign?  

Truth Squad finds Thanedar’s efforts to deflect responsibility for the animals to be unsupported, and award a rating of False.  

The claim:

Thanedar says he tried to step in to protect the animals during bankruptcy and called media accounts “all a misreporting just to smear me.” Referring to a creditor in federal bankruptcy proceedings, he stated in a TV interview where he believes the blame rests: “This is Bank of America. Not my fault.”

The facts:

Thanedar’s rags-to-riches profile, which began in poverty in India, includes the making of a fortune, its sudden loss, and a second rise to wealth. After completing post-doctoral work at the University of Michigan in the early 1980s, he built a prosperous chemical firm in Missouri, then borrowed $24 million to acquire several other firms.

But the Great Recession took its toll. In 2010, creditor Bank of America, seeking to recoup $23 million in debt, seized a group of businesses that included AniClin Preclinical Services in New Jersey. Thanedar got back on his feet with the Ann Arbor chemical firm Avomeen in 2010. (Last year, he was hit with a lawsuit alleging he made “fraudulent and misleading” claims to inflate the value of Avomeen, which he sold for about $20 million.)

By the spring of 2010, AniClin in New Jersey was shuttered, as lawyers for Bank of America and Thanedar jousted in Missouri bankruptcy court over how to dispense with its assets. That included 118 beagles and 55 monkeys housed as medical research test animals.

Thanedar said the animals were used to test medications for heart disease and other ailments as required by the U.S. Food and Drug Administration. It’s not entirely clear how many people were designated to care for the animals after the lab closed and a receiver took control of the facilities.

In June 2010, lawyers for Thanedar sought to block a motion by the receiver to have the lab’s dogs and monkeys placed in “animal sanctuaries for no compensation.” His lawyers argued “the value of the animals could have a range of between $189,000 and $445,000. The Motion does not indicate whether Receiver has taken any action to sell the animals (i.e. to another testing facility) for the benefit of the creditors.”

Three weeks later, the bankruptcy judge ordered the animals placed in sanctuaries. The order noted that the objection to the motion by Thanedar’s attorneys had been withdrawn.

On July 4, 2010, rescue organizations, including New York State-based Pets Alive, can be seen on video releasing the beagles from their cages to enjoy the outdoors. A California-based group, In Defense of Animals, eventually placed the monkeys in sanctuaries around the country.

Betsy Tegze, executive director of Pets Alive, told Truth Squad: “They were not in horrible condition. I’ve seen animals in way worse condition. We have been told that staff at the time was jumping over fences and feeding them.”

She added that the dogs were nervous and withdrawn at their release, as if afraid to walk on grass, behavior that is typical of test animals.

“They had never been outside. They didn’t know what fresh air was, what sunshine is.”

In previously undisclosed court testimony obtained by Truth Squad, Daniel Dooley, CEO of bankruptcy receiver Morris-Anderson & Associates, offered a grimmer portrait, saying AniClin “was in incredibly bad shape” just before it went into receivership.

“We had monkeys and beagles, dogs, that were starving. We actually ‒ before we were authorized as receiver, I would personally put up money in our own pocket to feed the animals so that they didn't starve…Employees hadn't been paid for some period of time. Benefits hadn't been paid. It was a bloody mess at AniClin.”

In another newly discovered court record supporting release of the animals, Bank of America told the court it had repeatedly offered AniClin the opportunity to continue to care for the animals and oversee their subsequent placement during bankruptcy, all at the bank’s expense.

The bank said AniClin “ignored” Bank of America’s offers, leaving the bank  no choice but to put the animals’ care in the hands of the receiver.

Contacted by Truth Squad, Thanedar said through his campaign: “To my knowledge, no such offer was ever received. My company, not the bank, paid the salaries of the animal care workers and paid for food and supplies for the facilities after receivership."

On the Dooley testimony that the animals were “starving,” Thanedar stated: "To my knowledge, Mr. Dooley did not visit the AniClin facility prior to the receivership taking over, so I do not understand how he can make such a statement."

He added that “all of the animals were saved, cared for and taken to animal shelters thanks to the tireless efforts of animal care organizations, activists and others involved. As a business owner and candidate for governor, I know that the ultimate responsibility for any organization ‒ whether it's running a business or leading a state government ‒ begins and ends with me, and I take that responsibility seriously…”

Who
Shri Thanedar
What
Responsibility for abandoned lab animals
The Call
False

Thanedar can credibly state he was not involved in day-to-day operations at AniClin, especially after it was closed during bankruptcy proceedings. But his statement that the allegations have been misreported and that Bank of America is to blame do not square with the record. Indeed, according to Bank of America court filings, AniClin did not respond to its offer for the lab to continue to care for the animals and try to place them with other labs, at the bank’s expense, during bankruptcy.

Thanedar insists the animals were not mistreated, a stance that appears to be supported by an animal rescue group but challenged by Dooley, the receiver CEO.

Court records also show Thanedar’s attorneys initially tried to block efforts to release the animals to sanctuaries so his business could try and sell the beagles and monkeys to other labs, reducing its bank debt.

That is certainly within their right; indeed, it can be argued Thanedar’s lawyers would not be doing their jobs if they weren’t trying everything possible to reduce what the failed lab owed the bank. But the fact remains that the court challenge likely had the effect of delaying the animals’ release from less-than-optimal living conditions.

The questions Thanedar faces regarding his treatment of the lab animals are not the product of “misreporting to smear” his candidacy for governor. The bankruptcy filings offer a clear, contemporaneous account of that chaotic period. Nor does it appear from the record that Bank of America did anything to place the animals in jeopardy.

Thanedar’s statements seeking to deflect blame are rated False.  

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Comments

Jeff
Thu, 05/24/2018 - 8:35am

Thank you for truth-telling. Will you please move along to Gretchen Whitmer and report on her unwillingness to support single-payer health care, her father's history as CEO of BCBS, and her solicitation of donations for BCBS which is a huge conflict of interest directly affecting the health care of millions of Michiganders?

MB83
Thu, 05/24/2018 - 8:43am

Thank you for looking into this issue. Shri may have made a lot of money in business over the years, but it's obvious from this story and others that some of his business practices are questionable. The last thing Michigan needs is another shady businessman running the show.

Victoria Bowman
Thu, 05/24/2018 - 9:11am

I would not vote for Shri Thanadar as dog catcher, let alone for Governor.
Dr. Abdul El-Sayed has my vote, as he is the most progressive candidate who truly cares for the people, and the animals not only in Michigan, but globally. He is a politician with a heart.

Trifle
Thu, 05/24/2018 - 9:37am

Bridge, keep up the good work of getting the facts out. MLive isn't doing it. The majority of Michigan newspapers and television news organizations aren't, whether because they lack the resources or, in the case of the Sinclair-owned TV stations, choose not to. You appear to be one of the few that is.

Barbara
Thu, 05/24/2018 - 8:00pm

Shri is a con man who has done little for michigan citizens ! To support this uninformed and trashy candidate is a mistake we cannot afford ! Abdul is my candidate and could support Whitmer ! Never Shri

Brady Boyce
Fri, 05/25/2018 - 10:51pm

To start with, the testing of animals, for whatever purpose, has been found to have little value and should be abandoned. In this situation, the welfare of the beagles and monkeys should have been the highest priority for any business owner. That did not appear to be the case here.
Credit to the workers and other animal welfare groups who took the initiative to care for these helpless animals and prevent an inhumane disaster!

Mary
Sat, 05/26/2018 - 2:32pm

Sounds like he is in the wrong political party. Fits the trump business model.

Ran
Sat, 05/26/2018 - 9:47pm

If Michigan is not diligent and careful who they elect it could become the first Muslim State in the US, a Sharia law state. Be careful who you vote for because your children will pay for your mistakes. You people, Michiganders already have a community in the corner of your state that looks like a foreign country...

Ran fan
Wed, 05/30/2018 - 5:36pm

Please come to Michigan to meet Michiganders. We are from all parts of the world, and we are sure you would like us.

Steve
Mon, 06/18/2018 - 11:02am

I think Ran is a Russian Bot. Regards to St. Petersburg, "Ran".