A Louisiana nursing home owner has agreed to pay $8.2 million in a settlement with the U.S. Department of Justice after being accused of misusing assets from four nursing home facilities. The settlement stems from allegations that Bob Dean Jr. violated the National Housing Act of 1934 by embezzling funds intended for the care and well-being of nursing home residents.
Inadequate Evacuation Plans Led to Tragedy and Death
The controversy surrounding Dean’s nursing homes gained national attention when more than 840 residents were evacuated to a warehouse in Tangipahoa Parish ahead of Hurricane Ida, a Category 4 storm. The makeshift shelter lacked proper facilities, leading to a disastrous situation in the aftermath of the hurricane. Several residents died due to the lack of adequate care and resources at the warehouse.
Federal Embezzlement Charges
According to the Department of Justice, Dean misused assets from the following four nursing home facilities he owned and operated:
- Ville Platte Healthcare Center (Ville Platte, LA)
- Richland Parish Healthcare Center (Delhi, LA)
- Richland Parish Retirement Center (Delhi, LA)
- Richland Parish Healthcare Center (Rayville, LA)
By misappropriating funds intended for the care and operation of these facilities, Dean violated the National Housing Act of 1934, which provides mortgage insurance for nursing homes.
Settlement Terms and Implications
Under the terms of the $8.2 million settlement, Dean has agreed to pay back the misused funds and has been prohibited from participating in any federal healthcare programs for the next three years. The settlement also requires Dean to sell all of his nursing home facilities within 90 days.
Calls for Stricter Regulations
The tragedy of Hurricane Ida and the subsequent revelations of financial misconduct have led to calls for stricter regulations and oversight in the nursing home industry, particularly when it comes to emergency preparedness and evacuation plans.
“This case serves as a stark reminder of the critical importance of ensuring that nursing home residents receive the care and resources they need, especially in times of crisis,” said a spokesperson for the Department of Justice.
As the nursing home industry continues to grapple with the fallout from this case, it is clear that more needs to be done to protect the safety and well-being of residents, both in day-to-day operations and during emergency situations.
