INDIANAPOLIS (AP) — An Indiana nursing home management firm has sued former executives accused of embezzling more than $16 million from the company.
The Indianapolis Star reports that American Senior Communities filed the lawsuit Friday against several individuals, including former CEO James Burkhart, and 16 shell companies.
The lawsuit alleges they took advantage of the company. Burkhart’s attorney says he’s innocent.
Federal prosecutors say the executives falsified and inflated costs of goods and services, which enabled them to steal discounts and rebates, and conceal kickbacks from 2009 to 2015.
Investigators say the executives used fraudulent transactions to buy vacation homes, private planes and even gold bars.
The executives were indicted in October on charges including conspiracy to commit mail fraud and money laundering. They’ve pleaded not guilty. The criminal trial is scheduled for January.
Information from: The Indianapolis Star, http://www.indystar.com
Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.