Four indicted in American Senior Communities billing probe

  • Comments
  • Print
Listen to this story

Subscriber Benefit

As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
This audio file is brought to you by
0:00
0:00
Loading audio file, please wait.
  • 0.25
  • 0.50
  • 0.75
  • 1.00
  • 1.25
  • 1.50
  • 1.75
  • 2.00

The former CEO of American Senior Communities and three other men have been indicted on felony charges following a year-long investigation by the FBI and other federal agencies into the company’s billing practices.

Former CEO James Burkhart was arrested at his Carmel home Wednesday morning. He and the other three indicted men—former Chief Operating Officer Dan Benson, Josh Burkhart and Steve Ganote—are expected to make initial appearances Wednesday before Magistrate Judge Tim Baker.

American Senior Communities, the state’s largest nursing home company, fired Burkhart and Benson days after the FBI raided Burkhart’s home and the company's offices in September 2015. 

Josh Burkhart, who is James Burkhart’s brother, and Ganote did not work at the company. Their alleged connection to wrongdoing was not immediately clear. Indictments spelling out charges are not yet unsealed.

Burkhart, 52, had been CEO of American Senior since 2002, helping to build it from a money-losing, midsize nursing home company into the state’s dominant nursing home operator. It operates nearly 100 nursing homes and assisted-living facilities that generate more than $600 million a year in revenue. 

Those operations include running 63 nursing homes for the Health and Hospital Corporation of Marion County, parent of Eskenzi Health, which owns the facilities and pays American Senior to manage them.

Sources with knowledge of the FBI’s investigation told IBJ last year that it was focusing on whether Burkhart or anyone else at American Senior received kickbacks from vendors that provided products and services to the nursing homes American Senior operates. 

Larry Mackey, a Barnes & Thornburg attorney representing Burkhart, could not be reached for comment Wednesday morning.

American Senior is owned by the Jackson family of Indianapolis. Over the years, the company's diverse business interests have ranged from grocery stores to car dealerships to apartments.

The company—whose ubiquitous TV ads salute the accomplishments of seniors—employs nearly 10,000 people. 

This story will be updated.

Please enable JavaScript to view this content.

Story Continues Below

Editor's note: You can comment on IBJ stories by signing in to your IBJ account. If you have not registered, please sign up for a free account now. Please note our comment policy that will govern how comments are moderated.

Get the best of Indiana business news. ONLY $1/week Subscribe Now

Get the best of Indiana business news. ONLY $1/week Subscribe Now

Get the best of Indiana business news. ONLY $1/week Subscribe Now

Get the best of Indiana business news. ONLY $1/week Subscribe Now

Get the best of Indiana business news.

Limited-time introductory offer for new subscribers

ONLY $1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In

Get the best of Indiana business news.

Limited-time introductory offer for new subscribers

ONLY $1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In

Get the best of Indiana business news.

Limited-time introductory offer for new subscribers

ONLY $1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In

Get the best of Indiana business news.

Limited-time introductory offer for new subscribers

ONLY $1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In