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FBI raids Indiana nursing home CEO

September 18, 2015
by Nicole Stempak, Associate Editor
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The FBI raided the house of the James G. Burkhart, CEO of Indiana-based American Senior Communities and the company’s headquarters Tuesday.

The Internal Revenue Service, Department of Health and Human Services Office of Inspector General and the US Attorney Medicaid Fraud Control Unit were also involved.

Authorities confirmed to a local news outlet the raids are related to criminal matter but won’t specify the nature of the investigation. No arrests have been made.

American Senior Communities manages nearly 100 senior care facilities and is one of the largest nursing home management companies in Indiana. The company is under contract to manage 60 skilled nursing and assisted living facilities owned by the Health & Hospital Corporation of Marion County. HHC is not a subject of this investigation, said spokesman Curt Brantingham.

American Senior Communities is cooperating with the government and is conducting its own review. “ASC has been contacted by the federal government in connection with an investigation into certain individuals or practices,” the company issued in a statement. “ASC is in compliance with all federal, state and local laws and regulations and will continue to conduct its business in accordance with the highest standards of integrity." 

In 2010, American Senior Communities agreed to pay $376,432 in penalties to settle a complaint that it employed seven workers who were ineligible under federal rules for reasons including the loss of licenses and a criminal conviction. At the time, it was the largest such settlement to date.