Indiana nursing home company sues former executives

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An Indiana nursing home management firm has sued former executives accused of embezzling more than $16 million from the company.

American Senior Communities filed the lawsuit Friday against several individuals, including former CEO James Burkhart, and 16 shell companies, according to The Indianapolis Star.

IBJ first reported on Burkhart's legal troubles in September 2015, when federal prosecutors raided his Carmel home.

Burkhart and other three other ASC executives were indicted in October 2016 on charges including conspiracy to commit mail fraud and money laundering. They've pleaded not guilty. The criminal trial is scheduled for January.

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.

For his defense, Burkhart hired attorney Larry Mackey, who won acclaim for prosecuting the Oklahoma City bombing suspects two decades ago.

Mackey and prosecutors have been fighting over subpoenas that have been filed in the case.

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