First, federal officials sought and received indictments of former top officers of American Senior Communities. Now, it’s the company’s turn to go after them.
ASC filed a lawsuit Sept. 15 accusing a handful of top execs and vendors of “systematically looting” the long-term care provider from 2008 to 2015. The complaint was filed in U.S. District Court for the Southern District of Indiana and claims the company’s former CEO, among others, engaged in a “pattern of racketeering activity” until the FBI raided its headquarters and then-CEO James Burkhart’s home.
Burkhart was named in the company’s lawsuit, along with former COO Daniel Benson, former CFO Roger Werner, Burkhart’s business associate Steven Ganote, and Burkhart’s brother Joshua Burkhart.
Ganote and Joshua Burkhart owned businesses that provided services or products to the company, the complaint said. Several other vendors and alleged shell companies were also listed.
James Burkhart plans to vigorously defend the charges and litigate for lost compensation, his lawyer said.
ASC’s complaint contends that the defendants sought to enrich themselves through a variety of kickback schemes, bonuses and money spent on travel and entertainment such as sporting events ($1.6 million) and gift cards ($73,000).
From the October 01, 2017 Issue of McKnight's Long-Term Care News
