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More officials sentenced in nursing home shake down

Washington Times-Herald - 7/14/2018

July 13--Federal officials have sentenced the rest of the executives involved in a long-running large-scale fraud scheme against Indiana's largest nursing home company. In all five people were sentenced for their part in a six-year scheme that involved more than $19 million.

The final person sentenced on Wednesday was David Mazanowski. He was sentenced to six months at a half-way house and six months of electronic monitoring. He was also ordered to pay a $60,000 fine and $808,000 in restitution. Authorities contend Mazanowski, who pleaded guilty to a single count of conspiracy to commit mail, wire, and health care fraud, orchestrated false billings that included consulting fees for work that was never done by co-defendant Joshua Burkhart. He also filed false bills that allowed ACS CEO James Burkhart to take hundreds of flights on private planes and even cover some of James Burkhart's political contributions.

Joshua Burkhart, who is James Burkhart's younger brother, was sentenced to four months in federal prison with two years of supervised probation after pleading guilty to conspiracy. He was also ordered to pay $420,000 in restitution.

Steven Ganote, who was not a member of the executive staff of ACS, but who authorities claim played a key role in the operation of the kickback scheme was sentenced to five years in prison and two years of probation. He was also ordered to pay $7 million in restitution. Authorities contend Ganote was the money man in the conspiracy.

"He managed the conspiracy's numerous bank accounts and its proverbial 'second set of books,' which he maintained by hand," said prosecutors in their sentencing memo. "He paid the participants their cuts. He tracked their criminal proceeds down to the penny, and he projected their take in future. He was the quintessential 'bagman.'"

American Senior Communities operated more than 70 facilities across Indiana. Those include The Timbers at Jasper, Willowdale in Dale, Good Samaritan Home and Rehabilitation Center in Oakland City, and Washington nursing homes Prairie Village and Eastgate Manor.

The company executives used their positions as top officers in the company to pressure vendors to submit inflated bids, false bills and kickbacks in order to do business with the firm. The scheme involved everything from American Flags and uniforms, to pharmacy supplies.

Company COO Daniel Benson, 57, of Fishers to five years in prison after pleading guilty to charges of conspiracy to commit wire, mail and health care fraud. The CEO James Burkhart, 53, of Carmel was the alleged ringleader and was sentenced to almost ten years in prison. Authorities say that the executives were receiving salaries in excess of $1 million. When authorities raided Burkhart's house, office and safety deposit box they found 150 gold bars, 200 gold coins, and more than $1 million in cash.

"The evidence shows a man absolutely obsessed with money," said prosecutor Nicholas J Linder. "He had everything and it still wasn't enough."

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(c)2018 Washington Times-Herald (Washington, Ind.)

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