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Stratford’s Democrat mayor, Dr. David Chess, is once again in the spotlight—this time not for his public embrace of progressive social causes, but for serious federal scrutiny of the medical services network he founded and still controls.
As the Connecticut Centinal previously reported in July, Mayor Chess made headlines for hosting a ribbon-cutting ceremony for a transgender pride crosswalk outside Stratford High School, where he posed with “Mr. CT Leather” from the BDSM community alongside children and dismissed critics as “haters.” Now, public court records show that the healthcare company he built has filed for bankruptcy after the federal government cut off its Medicare reimbursements amid allegations of false claims and fraudulent billing.
On November 6, 2026, Tapestry Management Services, Inc. and ten affiliated entities filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the District of Delaware (lead case No. 26-11777). The debtors, which operate under the TapestryHealth brand, provide remote monitoring, chronic care management, and related services to skilled nursing facility residents. Their principal place of business is listed in Stratford, Connecticut.
Court documents confirm that Dr. David Chess wholly owns multiple professional entities among the filers, including Chess Medical, P.C.; Chess Medicine PLLC; Tapestry Health PLLC; Tapestry Medical, P.C.; Tapestry Medicine PLLC; Tapestry TeleHealth PLLC; and others. Chess has long served as founder, chairman, and in various executive roles at the company, including as Chief Health and Policy Officer.
The filings and related pleadings state that the bankruptcy was triggered by Centers for Medicare & Medicaid Services (CMS) actions that suspended 100% of Medicare payments to several of the entities. These suspensions, imposed without prior notice in stages beginning earlier in 2026 and accelerating in August through October, included reversals of already-paid claims totaling hundreds of thousands of dollars. The company says the cutoffs left it unable to continue serving tens of thousands of patients or meet obligations to vendors and staff.
CMS’s actions followed civil investigative demands issued by the Department of Justice under the False Claims Act. The company has responded by filing an adversary proceeding against the United States, HHS Secretary Robert F. Kennedy Jr., CMS Administrator Dr. Mehmet Oz, and various Medicare contractors. In the complaint, TapestryHealth calls the allegations of improper billing “unsupported” and “groundless,” arguing that the payment freezes are unjustified and threaten care for vulnerable nursing home residents.
Whether the federal allegations prove accurate or not, the situation raises familiar questions about the judgment of elected officials who continue to operate complex businesses that rely heavily on taxpayer-funded programs. Chess won the mayor’s office in 2025 as a political newcomer who emphasized his business experience. Residents who have watched him prioritize social signaling—such as the pride crosswalk event previously detailed by the Centinal—may now wonder how those priorities square with the financial and regulatory turmoil at the company he founded.
The Delaware bankruptcy cases remain ongoing, with a initial hearing scheduled for November 9.
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