The United States has filed a lawsuit under the National Housing Act of 1934 (NHA) against Bob Dean Jr. and several related companies for misappropriating and misappropriating the assets and income of four nursing homes in Louisiana prior to Hurricane Ida in August 2021. .The four nursing homes, all of which owned and operated by Dean and his companies, and had loans insured by the Federal Housing Administration (FHA), Maison De’Ville Nursing Home – Houma, Maison De’Ville Nursing Home of Harvey. , Maison Orleans Healthcare of New Orleans, and West Jefferson Health Care Center.
The FHA, part of the U.S. Department of Housing and Urban Development (HUD), provides mortgage insurance on loans that include nursing homes, such as nursing homes, according to the NHA. To encourage lenders to make loans in these areas, FHA mortgage insurance provides borrowers with protection against losses caused by borrower defaults. their mortgage. To obtain FHA loans, borrowers must enter into Regulatory Agreements with FHA that provide, among other requirements, that the assets and income of a nursing home are insured. the FHA can be spent on goods and services that are reasonable and appropriate. in the operation of the nursing home. The NHA authorizes the United States to double the amount of any assets and income of FHA-insured nursing homes that were misappropriated or misappropriated. .
The United States’ lawsuit, filed in the U.S. District Court for the Middle District of Louisiana, alleges that from 2016 to 2021, Dean required the nursing homes to pay “fees” to on a warehouse he found that it would be a storm to remove it. center The lease, which totaled more than $1 million, was paid to one of his companies. Instead of using the money to prepare the warehouse for a storm, he allocated most of that money to his own bank accounts. In the days leading up to Hurricane Ida’s expected landfall in August 2021, Dean evacuated residents of four nursing homes in the warehouse. When people arrived, sanitation was not maintained, and nursing home staff did not prepare enough food, provide wound care, or ensure adequate medical care and support for residents. As a result, on September 2, 2021, the Louisiana Department of Health evacuated people from the evacuation center and revoked Dean’s nursing home license.
It is further stated in the complaint that after removing the residents and revoking the license, Dean and his organizations continued to mislead and misuse the assets and income of the nursing homes. Specifically, Dean ordered his accountant to sweep all the nursing home accounts and transfer millions of dollars to his own accounts. America said that Dean did not use the funds to operate or maintain the homes for the elderly, which are not currently operating due to the hurricane. but he used the money to buy personal goods and services, including antiques, guns, and cars. , and fund an allowance for his family members. The complaint states that, overall, Dean misused and misallocated more than $4 million in assets and income of the nursing home.
“The department is committed to protecting our nation’s seniors and the important federal programs designed to support them,” said Acting Assistant Attorney General Brian M. Boynton, who heads the Department of Justice of the Ministry of Justice. “When individuals seek to use these programs for their own personal gain, we will use all the necessary tools at our disposal to verify them.”
“Federal loan guarantees are designed to facilitate the care of our most vulnerable citizens,” said US Attorney Ronald C. Gathe Jr. for the Middle District of Louisiana. “It is unfortunate that some chose to use the disaster of Hurricane Ida as an opportunity to use the system to unjustly enrich their businesses. This office will continue to work with our partners to identify those who misuse federal funds.”
“After learning of the inhumane treatment of nursing home residents owned by Bob Dean during Hurricane Ida, HUD referred this matter to the Department of Justice to investigate Dean’s allegations to the misuse of HUD funds,” said HUD General Counsel Damon Smith. “By working with our partners at the Department of Justice and supporting this action, HUD reaffirms that it takes the responsibilities of nursing home owners seriously.”
“Dean’s alleged actions represent a blatant disregard for human life and our most vulnerable institution,” said Deputy Special Director Robert Lawler of the HUD Office of Inspector General (HUD OIG ). “The HUD OIG will continue to work with its law enforcement partners to diligently pursue, investigate, and prosecute criminals who are misappropriating and misappropriating Federal assets and putting HUD recipients in a position to hurt.”
The complaint is the result of an effort by the Commerce Division, Fraud Division, and the Office of the United States Attorney for the Middle District of Louisiana, with extensive assistance from HUD and the HUD OIG. . This case is being handled by Fraud Section Attorney Christopher Reimer and Assistant Attorney General Davis Rhorer Jr. for the Central District of Louisiana.
The case described in United States v. Bob Dean, Jr., et al., 3:23-cv-00019 (M.D. La.).
The United States’ complaint stemmed from an investigation initiated by the Department of Justice as part of its Elder Justice Initiative, which supports the efforts of state and local attorneys, law enforcement, and others. Elders of the court against elder abuse, neglect, and money. use, and development of training, resources and information. Learn more about the Department of Justice’s Elder Justice Initiative at http://www.justice.gov/elderjustice.
