Tuesday, September 15, 2015

American Senior Communities CEO's Carmel Home Raided By FBI

Burkhart Board Photo_DSC_8635.Burkhart_compressed
James Burkhart
American Senior Communities is a large nursing home operator that operates a chain of nursing homes across the state of Indiana ostensibly owned by the Marion County Health & Hospital Corporation. Regular readers of this blog are familiar with the scam under which HHC pretends to own nursing homes ASC operates for it so the nursing homes qualify for much higher Medicaid reimbursement rates The two entities split the profits, which HHC used, in part, to build its $750 million Eskenazi Hospital. It's unclear what FBI agents are doing, but various news reports say a team of agents descended on the home of ASC CEO James Burkhart this morning to conduct an investigation of some sort. Sources tell WRTV that officials are conducting an investigation into Medicare and Medicaid reimbursement and possible kickbacks. Burkhart sits on the board of the Indiana Health Care Association, which he also chairs.

UPDATE: WRTV has confirmed that the raids taking place today involves numerous other locations, in addition to Burkhart's sprawling Carmel mansion, and includes the participation of IRS agents and officials of the federal Department of Health & Human Services.
FBI investigating home of senior communities CEO
The Marion Co. Health & Hospital Corporation released this statement to WRTV stating that neither it or its employees are the subject of this investigation:
Health & Hospital Corporation of Marion County (HHC) is aware of the investigation of James G. Burkhart, CEO of American Senior Communities. American Senior Communities is one of the largest nursing home management companies in the state of Indiana. HHC has contracted with ASC to operate and manage nursing home facilities owned by HHC.
HHC is assured that HHC and its employees are not the target or subject of any investigation and that this investigation is not related to the care that any patient has received at any of HHC’s nursing homes. Moreover, this investigation will not impact the care that residents receive at any of HHC’s nursing homes.
HHC is working closely with the U.S. Attorney’s office and the FBI to assist and cooperate. Because it is an ongoing investigation it would be inappropriate for us to comment further. Any additional questions should be referred to the US Attorney’s office.

11 comments:

LamLawIndy said...

When the bonds for this were floated, I always questioned why they had to be G/O bonds; if the deal was so good, then revenue bonds should've sufficed. I don't know if this will trigger any sort of credit event with respect to those G/O bonds, but as a Marion County taxpayer I believe that I'm about to get screwed once again.

Anonymous said...

It's too bad, but I am sure that this investigation will not have anything to do with the Health and Hospital Corporation's immoral (but sadly not illegal) use of ASC to rake in more medicaid and federal health dollars from us taxpayers so that they can continue to waste money on new hospitals and salaries for political hacks.....and it is too bad that there is not any elected official -- state, federal, or local -- who is willing to take on the scandal that allows HHC to continue to do this -- a Marion County governmental agency that has nursing homes in all corners of the state.

Pete Boggs said...

In a nation of laws, this should trigger claw backs on behalf of duped taxpayers; defrauded by inequitable, Hallmark quality, proponent drafting of so called "referenda." In reality, statists insist that citizens be referee-damned...

Anonymous said...

Their statement is very humorously worded. HHC is assured? Assured by who? Law enforcement and prosecutors are never going to comment on who is a target and who isn't. So their comment of being assured is a weak red herring. Sounds like they held a staff meeting and said, "hey, anyone doing anything illegal?" (crickets) "No? Ok, consider us assured."

Gary R. Welsh said...

Agreed, it's too early to know who all is a target of the investigation now. Jared Fogle's spokesperson kept denying he was a target even as his home was being raided. I would caution investigators working this case about how information is shared with the U.S. Attorney's Office for the Southern District. It's notorious for undermining investigations through leaks. Deborah Daniels, Mitch's sister, sits on the HHC's board and she and her law firm have represented the HHC for many years. Deborah formerly served as U.S. Attorney in that office where she was noted like so many of the political hack occupants of that office for covering up and sabotaging federal investigations. ASC's Burkhart and HHC's Matt Gutwein are on very friendly terms with Joe Hogsett, who still has a few of his stooges working in that office who would probably be more than happy to blow up an investigation to protect Joe's political friends.

Gary R. Welsh said...

I also see where Barnes & Thornburg's Larry Mackey is now representing Burkhart. There's another attorney very capable of corrupting federal criminal investigations for the benefit of his clients. Nice work, Larry, in getting your former law firm colleague assigned to handle the prosecution of your client, John Bales, and proceed to throw the case and ruin the possibility of bringing Carl Brizzi and corrupt self-dealers within the Daniels' administration to justice, along with members of your own law firm.

Anonymous said...

Larry, not to be outdone in the red herring department, ends his statement claiming this is a "cost review." Is he trying to imply the FBI does medicaid's bidding in "cost reviews." Anyone who believes this has something to do with reviewing costs is probably also presently at a title company buying some prime Arizona swamp land.

I think you've nailed the crux of this investigation in previous postings. Can you conceive of a more potentially corrupt situation than being able to bill at an inflated rate just by being "owned" by the government? HHC held a HUGE bargaining chip over ASC and by utilizing HHC, ASC was able to make insane money that bought that sprawling Carmel home for Mr. Burkhart. You don't think someone at HHC didn't have their hand out for that? Sorry, didn't mean to interrupt your real estate deal.

Anonymous said...

Saving JB, CB, JL, BB et al. was like taking candy from a baby for LM. Have to admire his ability to disappear dozens of surveillance videos, John Doe No. 2 and forensic evidence of bombs inside MB in OKC with the help of FK. And the RJ boys are most appreciative of LM for shutting down investigation of the Amazon sex tours used for entrapment of the VIP club. Never underestimate the power of the 33rd degree.

Anonymous said...

11:50, do you want to try restating your comment again, this time with an emphasis on coherence?

Gary R. Welsh said...

It sometimes requires being a decoder to understand social media comments, anon. 5:59.

Sir Hailstone said...

Only thing I could decode from that is "evidence of bombs inside MB (Murrah Building) in OKC (Oklahoma City)" and "Never underestimate the power of the 33rd degree." referring to the Illuminati

"Amazon sex tours" - Jeff Bezos does sex tours????