INDIANAPOLIS -- Two former executives of American Senior Communities and their associates have agreed to plead guilty in connection with a scheme to defraud the federal health care system of more than $16 million.
ASC's former CEO James Burkhart, his brother Joshua, former ASC COO Daniel Benson, and Steven Ganote, an associated and personal friend of Burkhart, were indicted last October on 32 federal counts, including conspiracy to commit wire, mail and health care fraud, money laundering and conspiring to violate anti-kickback statutes.
According to documents filed in district court last Friday, James Burkhart will plead guilty to four charges with a combined maximum penalty of 45 years in prison.
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Prosecutors will dismiss 17 other charges against Burkhart in exchange for his plea.
Burkhardt's attorney, Kathleen Matsoukas, said as part of the agreement he will pay several million dollars in restitution to the affected parties.
"I accept responsibility today for criminal actions I took while I served as CEO of American Senior Communities. I am deeply sorry for having taken advantage of my relationships and positions for the sake of personal financial gain," said James Burkhart in a statement.
According to court documents, Former ASC COO Daniel Benson will plead guilty to three counts, with seven to be dismissed, and could face up to 45 years in prison.
Steven Ganote will plead guilty to three counts, with 12 to be dismissed, and could face up to 45 years in prison.
Joshua Burkhart, will plead guilty to one count and could face up to 20 years in prison
American Senior Communities also released the following statement in reaction to the guilty pleas.
"American Senior Communities is grateful for the efforts to bring justice in the legal case involving ASC's former CEO and COO and related parties. The plea agreements further strengthens (sic) our resolve to maintain our customers' trust as we continue to provide exceptional senior care
