One of the largest nursing home-related fraud stories of the last decade involved the top executive of Indiana’s largest publicly owned SNF company, American Senior Communities, and four others being criminally prosecuted along with a deal to repay $15.5 million.
An expansive investigation conducted by former federal prosecutors hired by ASC, however, claimed that five times as many people took part in at least 20 schemes, and that the fraud involved at least $35 million.
The bombshell allegations come in a report published Thursday by IndyStar. The news outlet said its coverage is based on a “secret” 277-page report that successor executives at ASC assembled in 2016 to show prosecutors they were intent on cooperating.
“Twenty-five businesspeople allegedly benefited, unfairly raising prices on everything from maintenance to medical supplies at homes across the state owned by Health & Hospital Corp. of Marion County, the local health agency,” the IndyStar reported.
Former ASC CEO James Burhart was at the top of the audacious network of schemes, which unraveled after a furniture vendor reported an attempted shakedown in 2015 to the FBI. Federal agents raided Burkhart’s homes and offices, recovering more than $1 million in gold and cash in a home safe alone, drawing massive media attention.
Civil lawsuit action remains ongoing, with ASC alleging that an uncharged alleged co-conspirator is hiding money for Burkhart, who is currently serving a 9½-year prison sentence.
The latest IndyStar report is part of the outlet’s ongoing investigation and coverage of nursing home injuries and deaths.
Among other things, Thursday’s report explains how large numbers of Indiana nursing homes are owned by companies that allegedly divert profits to enhance hospital holdings.
