BATON ROUGE, La. (BRA PROUD) – A Louisiana nursing home owner has settled and agreed to pay $8.2 million after being accused of misusing the facility's assets. More than 840 people reportedly evacuated to a warehouse in Tangipahoa Parish to ride out Category 4 Hurricane Ida in 2021. Several people died in the storm's aftermath due to lack of proper equipment and care.
Bob Dean Jr. was charged with violating the National Housing Act of 1934 by misusing the assets of four Louisiana nursing homes and was ordered to pay $8.2 million in settlements, according to the U.S. Department of Justice. It is said that
The Federal Housing Administration (FHA), which provides mortgage insurance for loans intended for residential care facilities, covered the home. These include Maison Deville Nursing Home in Houma and Harvey, Maison Orleans Healthcare in New Orleans, and West Jefferson Healthcare Center in Harvey.
When Category 4 Hurricane Ida struck in 2021, more than 840 residents were forced to “weather out the storm in an unprepared industrial warehouse owned by Dean through a corporation.” The Justice Department said the residents were debilitated and without proper care. 15 people died. The state Department of Health investigated Dean and revoked his license.
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In 2023, the government filed a complaint accusing Dean of improperly spending the facility's assets and revenues. Dean is also accused of funneling funds that were supposed to be used to prepare residents for evacuation into his personal bank account.
“This settlement continues the Department's continued commitment to hold accountable those who have put their financial interests ahead of the needs of our nation's seniors,” said Brian M. Boynton, Principal Deputy Assistant Attorney General for the Department of Justice's Civil Affairs Bureau. It shows our commitment.” “We will continue to take action to protect the integrity of federal programs designed to ensure that nursing home residents, some of our most vulnerable citizens, receive the care they deserve.”
Dean avoided prison time earlier this year by pleading no contest to eight counts of abuse of an infirm, five counts of felony health care fraud, and two counts of felony obstruction of justice. He was scheduled to serve a three-year suspended sentence.
In 2022, a class action lawsuit against Dean was settled for $12.5 million.
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