The Cowboy | Lonesome Doc | S5-E5

Dr. Death

This episode of Dr. Death examines the case of Dr. John Schneider, a physician whose medical license was revoked due to patient deaths and malpractice, yet continued to practice through fraudulent asset transfers and deceptive hiring practices. Despite being declared bankrupt and facing millions in liability, Schneider hid assets in trusts and lied about ownership, eventually being hired by the VA

Key takeaways

• Schneider transferred millions in assets to family trusts to evade creditors, raising suspicions of bankruptcy fraud.
• He falsely claimed ownership of personal items like a motorcycle and furniture to conceal assets during bankruptcy proceedings.
• Despite losing his Wyoming license after a patient's death, Schneider secured a VA position using valid licenses in Montana and Utah.

Transcript preview

Audible subscribers can binge all episodes of Dr Death, The Cowboy, early and ad-free. Join Audible today by downloading the Audible app or by subscribing on Apple Podcasts. About 12 miles north of Cody, where Hart Mountain rises above open farmland, a lone car wound its way toward a secluded ranch. Over the entrance, a Pinewood Arch, whispering winds. It's got this huge block cabin. Everything's in good shape. He's got a huge full-size writing arena that's a separate building. A lawyer named Joe Womack followed the long drive to the house, passing hayfields and a well-stocked pond. You could see the fish rising around the pond, so you could just go stand on the bank and... take your little fly line and stick it out there and catch some trout. But Joe hadn't come for the fishing. He was there because John Schneider had declared bankruptcy. It had been a year since Schneider had been stripped of his Wyoming medical license, and now more and more of his former patients and their families were pursuing him for malpractice. The bill was potentially in the millions. by the court as the bankruptcy trustee to assess the scope of Schneider's wealth. He was claiming that he just didn't have the ability to pay any of his debts, that he didn't have any assets. Yet here was his home, replete with a riding arena and a fishing pond. As Joe parked his car, Dr Schneider came out to greet him. He's got a nice cowboy hat on and his tester. that goes all the way down to the ground, and he's got his cowboy boots on. I see somebody like that, and I just say, man, you are such a dude, want to be cowboy. He's clearly not a working rancher. Those guys don't show off like that. Dr. Schneider played the gracious host, walking Joe around, pointing out the crops had planted in the fields. Then he showed him around the house. Joe took photos of the the wooden furniture and dining room set. He was hoping he might be able to sell them to pay Dr. Schneider's debts, but Dr. Schneider told him that the furniture wasn't his to sell. He tried to claim it was all owned by his wife. The same went for the ranch itself. Schneider didn't technically own that either. He had transferred it into a trust for his children. Back at the office, Joe began digging through the vast mountain of paperwork detailing Dr. Schneider's financial affairs. It wasn't easy to untangle. Joe reckoned that at one time Schneider had been worth as much as 17 million dollars. But not anymore. At least not according to these papers. That made me very suspicious. When you see something like that, when I see something like that, that means I've got to make some inquiry and dig into things to see what was going on. The more Joe Dub, the more questions he had. Schneider didn't transform from multi-millionaire to penniless overnight. It seemed pretty clear to Joe that he was shielding his assets. And the timing caught his eye. Because Dr. Schneider's money had been vanishing at exactly the same time as everything else in his life was falling apart. I'm Raza Jaffrey and in the new season of the Spy Who, we go back in time to meet Benedict Arnold, the spy who betrayed the American Revolution. As America fights for freedom from Britain, Arnold emerges as one of the rebels greatest generals. But when his loyalty is pushed to the limit, he turns spy, and advises a plot to shatter the rebellion and make George Washington a prisoner. Follow the spy who now, wherever you listen to podcasts. You can also listen to the full season of the spy who betrayed the American Revolution. early and ad free on Audible. I'm Leon Nefak. What happens when only fans becomes more than just a side hustle? Only Fantasy is an in-depth look at the world's newest profession and how the rules of human intimacy are being rewritten online. Listen wherever you get your podcasts. Or binge all episodes of Only Fantasy, ad-free, only on Audible. is Dr. Death, the cowboy. This is episode five, lonesome doc. Joe Womack, the bankruptcy trustee, worked on building the timeline of Dr. Schneider's financial transactions. In 2011, the he was anxiously emailing his accountant. He wrote, I am concerned almost daily with my liability exposure as a neurosurgeon and with the frequent bloody battles between contentious providers in the region. I want to maximize my asset protection. Is it worth opening an account outside of the country in an extradition-free environment like Nevis or the Caymans? We don't know the accountant's response, but pretty soon, Schneider began transferring millions of dollars. worth of assets into entities owned by his children. By December of that year everything began to fall apart. First, Russell Monaco died and Dr. Schneider's license to practice was suspended. Then Jimmy Biles sued him for defamation. Quickly, Dr. Schneider's remaining money and assets began to start flying around in a complicated web of trusts and companies, all owned by different members of his family. Legitimate estate planning, Schneider said. Joe wasn't buying it. So I believed that all these transfers were bogus. He did it strictly to keep him away from creditors. And then when he goes to zero, files bankruptcy and says, I got nothing, give me a discharge. I just didn't believe it. Although his family wasn't suspected of wrongdoing, it looked like Dr. Schneider was hiding his money to avoid paying. the very patient's he was accused of harming. And Joe realized the pattern went even further. When Schneider had to make a list of everyone he might owe money to, he didn't stop with the people already threatening to sue him. He included seemingly every person had ever operated on in Wyoming and Montana. Not because they had sued him or had in fact made a claim against him, but he was looking to prevent any other people from suing him in the future. For Joe, the suspicion was undeniable. Schneider wasn't just shielding himself from current lawsuits. He was trying to avoid any further claims. On a chilly winter's day in Billings, Montana, Joe Womack watched as Dr. Schneider settled into his seat. Dr. Schneider, would you please raise your right hand? Do you solemnly swear or affirm that the testimony you're about to give will be the truth, the whole truth and nothing but the truth? They were there for a formal meeting, an opportunity for Dr. Schneider's creditors and their lawyers to ask him questions under oath. Joe started running through all the entities and assets connected to Schneider. It was a long list. Properties, land, bank accounts, and vehicles. And then one particular vehicle caught his attention. There was a Harley-Davidson motorcycle that you indicated was gifted in 2002. your brother-in-law? Correct. Okay, so you have not had possession of it, nor has it been in, you haven't had possession of that since 2002? Well, I've been able to use it periodically, but I'm a neurosurgeon, so I tend to shy away from motorcycles, but it's not mine. Something didn't quite add up. Did he ride it out here and then you use it or how does it come to be that you use that motorcycle when he's in California and until recently you've been in Montana and Wyoming? He has written it out here and he has periodically left it here and periodically brought it back to California. All right. Joe casually moved on to other questions, but Schneider's answer stayed with him. I'm very suspicious