American Senior Communities (ASC), an Indianapolis-based nursing home ownership group with locations throughout Indiana and Kentucky, is suing its former CEO and several other executives for swindling millions from the company and spending it on personal luxury items including planes, vacations, and houses. ASC’s former CEO, James Burkhart, is specifically accused of setting up shell companies that appeared on the books to sell certain products and services to ASC. The price of these items was exaggerated in order to allow the accused executives to pocket large sums of money.
According to ABC News, the nursing home chain operates close to 100 facilities, 60 of which contract with the public health agency in Marion County, Indiana. Due to this relationship, the case is being prosecuted by the federal government, whose investigation revealed that nearly $16 million was stolen between 2009-2015.
In a statement made by his attorney, Mr. Burkhart said that he is not guilty and that ASC owes him millions under his employment agreement, which he intends to recover from the company.
The federal government is currently pursuing charges on 30 counts against the executives. The trial is set to begin this January.