All five participants in a massive series of fraud, kickback and money-laundering schemes centering on American Senior Communities were handed lengthy sentences in July, most of them behind bars.
Former CEO James Burkhardt faces 9½ years in prison, while former COO Daniel Benson received a 4½-year sentence. Steven Ganote, a friend and associate of Burkhart will serve five years, while Burkhart’s brother Joshua was sentenced to four months, plus a lengthy period of supervision.
The last defendant, former landscaping company executive David Mazanowski, will serve six months in a halfway house. All of them agreed to plea deals, which also brought fines, restitution and various terms of monitoring.
From 2009 to 2015, authorities said, the conspirators conducted secret side deals, inflated bills, made kickback payments and created various shell companies.
Eventually, a vendor refused to be shaken down and tipped off federal law officials. Subsequent FBI raids on Burkhardt’s home and offices made headlines in 2015.
At no time did the shady dealings affect resident care or outcomes, other company officials emphasized.
Burkhardt and crew lavished themselves with private airplane trips, hundreds of thousands of dollars worth of sports tickets, jewelry, gift cards, homes from Indiana to New York, and much more.
The conspirators were indicted on charges of defrauding American Senior Communities, the Medicare and Medicaid programs, the local county health department and others.
In September 2017, ASC filed suit, accusing past execs and vendors of “systematically looting” the company. Named were James and Joshua Burkhardt, Benson, Ganote and former company CFO Roger Werner.
At the time of the FBI raids, ASC operated nearly 100 skilled nursing, hospice and assisted living facilities in Indiana and Kentucky.
From the August 01, 2018 Issue of McKnight's Long-Term Care News
