and several affiliated corporate entities to have misappropriating and misusing the fresh assets and income away from four nursing homes in Louisiana both before and after Hurricane Ida’s landfall within the . Brand new four assisted living facilities, that was basically possessed and you will operate of the Dean and his companies, along with fund covered because of the Government Homes Management (FHA), are Maison De’Ville Nursing Household – Houma, Maison De’Ville Nursing Home out of Harvey, Maison Orleans Medical care of new Orleans, and you can West Jefferson Healthcare Center.
S. Agency off Property and you can Metropolitan Innovation (HUD), will bring mortgage insurance to the finance which cover domestic care and attention business, particularly nursing facilities, pursuant to your NHA
Brand new FHA, which is the main You. So you can remind loan providers and come up with money to help you such as organization, FHA financial insurance rates provides lenders that have safeguards facing losses that effect of borrowers defaulting on the mortgage loans. To locate for example FHA-insured money, mortgage receiver have to go into Regulatory Plans for the FHA you to definitely provide, certainly most other conditions, that property and you can earnings away from a keen FHA-covered medical domestic might only be used on goods and services that will be practical and you can wanted to the fresh new operation of your own breastfeeding domestic. Brand title loans Virginia new NHA it permits the united states to recoup double the quantity of any possessions and you can earnings regarding FHA-insured assisted living facilities that have been defectively delivered or misspent.
Rather than with the financing to prepare this new warehouse for a hurricane, the guy funneled much of that cash so you can his own bank account
The latest United States’ criticism, registered during the U.S. Region Judge towards Middle District regarding Louisiana, alleges one to, out of 2016 to 2021, Dean expected the fresh new nursing homes to pay “rent” to your an industrial facility he had gotten supposedly in order to serve as a great hurricane evacuation cardio. The fresh new lease, and therefore totaled more $1 million, is actually paid down to just one away from his business organizations. On days leading up to Hurricane Ida’s questioned landfall when you look at the , Dean exhausted the brand new residents of one’s four assisted living facilities with the factory. Once residents arrived, hygiene wasn’t was able, and also the nursing homes’ teams didn’t prepare adequate food, offer injury worry, or ensure sufficient medical care and you may help into customers. This means that, into the , the new Louisiana Agencies out of Wellness got rid of brand new residents in the evacuation center and you can revoked Dean’s medical household certificates.
The fresh new ailment next alleges that whenever this new customers was evacuated as well as the certificates terminated, Dean and his awesome business agencies went on to misdirect and you will misspend the medical homes’ possessions and you may income. Specifically, Dean directed his bookkeeper in order to sweep all breastfeeding homes’ bank account and you can transfer the brand new millions of dollars away from financing to his personal accounts. The usa alleges you to definitely Dean don’t make use of these fund to perform or maintain the assisted living facilities, hence yet just weren’t doing work of the hurricane, and you can as an alternative utilized that it currency to get private goods and services, plus antiques, weapons, and you may autos, and also to money allowances to possess their nearest and dearest. The latest criticism alleges one, altogether, Dean misspent and misallocated more than $4 million of medical homes’ assets and you may earnings.
“The new agencies is invested in protecting our country’s seniors and crucial federal programs made to help them,” told you Dominant Deputy Assistant Attorney General Brian M. Boynton, lead of your own Justice Department’s Civil Department. “When anyone seek to exploit these applications for their individual economic get, we are going to explore all of the suitable systems during the all of our disposal to hang him or her guilty.”
“Federal loan promises are designed to support the new care of the really vulnerable citizens,” said You.S. Attorney Ronald C. Gathe Jr. to your Middle Area out of Louisiana. “It is sad one certain made a decision to use the heartbreaking landfall regarding Hurricane Ida as the the opportunity to take advantage of the program so you can unjustly improve the business. This place of work will work with our lovers to hang those accountable whom misappropriate federal fund.”
“Upon discovering of the callous manner in which people away from nursing home belonging to Bob Dean was treated throughout the Hurricane Ida, HUD introduced this matter to the Fairness Company to analyze Dean’s so-called punishment out of HUD’s loans,” told you General Counsel Damon Smith of HUD. «Because of the handling all of our people at the Fairness Service and supporting this task, HUD reaffirms that it requires the debt away from nursing homeowners absolutely.”
“Dean’s alleged methods represent a disgusting ignore to own person lives and our very own extremely insecure community,” told you Pretending Special Representative in control Robert Lawler off HUD Place of work of Inspector General (HUD OIG). “HUD OIG works along with its the police couples in order to faithfully follow, take a look at, and you can hold bad crappy actors whom willfully abuse and mismanage Government possessions and place HUD beneficiaries into the harm’s means.”
