U.S. Justice Department officials have filed a civil lawsuit against nursing home owner Bob Dean, accusing him of “misappropriating and misusing the assets and income of four nursing homes in Louisiana” to the tune of $4 million.
Dean has faced multiple lawsuits over the treatment of residents of his nursing homes who were evacuated to an industrial warehouse that plaintiffs said was ill-suited for elderly care in the wake of Hurricane Ida in August 2021.
“The situation quickly deteriorated,” the complaint filed on Jan. 12 in the Middle District of Louisiana states. “Residents languished in squalor and did not receive adequate care, some left naked on their cots, others calling out for help to no avail.”
The lawsuit accuses Dean of requiring his nursing homes to pay $1 million in “rent” for the warehouse and then putting the rent funds in personal bank accounts rather than using the funds to properly equip the warehouse for housing the vulnerable residents in the event of a hurricane.
Nursing homes insured by the Federal Housing Administration (FHA) can only use assets and income generated from the homes for goods and services needed to operate the facility, Justice Department officials said in the complaint. In addition, the United States can recover twice the amount of the funds that have been misspent, according to the lawsuit.
Dean and his corporate entities continued to misspend nursing home assets after his licenses were eventually revoked, the complaint says, with funds being used out to buy “antiques, firearms and cars, and to fund allowances for his family members.”
Morris Bart, a New Orleans attorney whose law firm represents plaintiffs and families suing Dean in a class action, said he wasn’t surprised by the federal action.
“After years of litigating against Bob Dean, I am firmly convinced that he is a con artist,” Bart told the Louisiana Record in an email. “My law firm recently presented evidence at a hearing in the 24th Judicial District Court which clearly showed Bob Dean had millions of dollars of assets that he was hiding.”
The latest lawsuit also argues that Dean and associated business entities failed to maintain accurate financial records showing that the nursing home assets were used for reasonable operating costs or upkeep.