Friday, September 18, 2015

American Senior Communities Sacks CEO In Wake Of FBI Raid

Burkhart Board Photo_DSC_8635.Burkhart_compressed
The man who helped build American Senior Communities into the large provider of long-term services it has become is out of his job as the company's CEO. ASC announced it had fired Burkhart today in response to a raid FBI and other government agents conducted on the company's corporate offices and Burkhart's sprawling Carmel mansion earlier this week. Here's their statement:
As has been reported in the media, the federal government conducted searches earlier this week at the home and office of American Senior Communities’ CEO. The government has not commented on that investigation.
As the result of ASC’s internal review, this investigation does not touch upon the operation of any nursing home serviced by ASC. However, ASC has terminated the employment of its CEO, James G. Burkhart, effective immediately. While this is a difficult situation, it will not affect ASC’s operations, including its employees, other healthcare providers, and, most importantly, its residents.
American Senior Communities is launching an immediate search for an interim and permanent CEO who will embrace ASC’s core values of C.A.R.E. – Compassion, Attentiveness, Relationship, and Excellence – and promote and maintain the ASC culture of caring for others while demonstrating the highest level of integrity. Meanwhile, the chief executive functions have assumed by the American Senior Communities’ board of managers, each of whom has long-term experience in the healthcare business, and senior care in particular.
This news does not bode well for Burkhart's fate. It is unlikely the company would have moved to sack him so quickly unless it did not expect a good outcome from the investigation. ASC is a privately-held company. Dan Benson is identified as the company's COO, but I have no information on who the principal owners of ASC are besides Burkhart. If anyone has that information, please share it.

UPDATE: A few observant readers pointed out that Wes and Blake Jackson are the monied people behind ASC. They're also the owners of Turtle Creek Management. The Jacksons are big conservative Christians who donate big bucks to Republicans, while Burkhart was the guy funneling money to the Democrats. Wes Jackson even donated $22,000 to Eric Miller's campaign when he ran for governor. The Jacksons are founding members of the National Christian Foundation. Don't be fooled by the name.


Anonymous said...

So both IRS and FBI were involved in the did ACS only start their internal review AFTER the raid?

IRS makes me want to ask who is there outside accounting firm, because it sounds like someone missed something. The FBI makes we want to ask if this guy knew Jared Fogle of Subway fame.

Anonymous said...

Sacked? Football metaphor or are we now British? Keep calm and RICO on!

Anonymous said...

Sad. Jim Burkhart grew up in a close, lovely family in Rush County - where Joe Hogsett grew up.