Baton Rouge Reporter

Bob Dean Jr. and his affiliated companies have agreed to an $8.2 million consent judgment to address allegations of financial misconduct related to the evacuation of nursing homes during Hurricane Ida in August 2021. The settlement resolves claims that Dean and his entities violated the National Housing Act of 1934 by misusing assets and income from four Louisiana nursing homes insured by the Federal Housing Administration (FHA).

The FHA, a division of the Department of Housing and Urban Development (HUD), insures loans for residential care facilities like nursing homes under specific regulatory agreements. These agreements stipulate that funds must be used solely for necessary operations. Allegations against Dean include diverting funds intended for evacuation preparations into personal accounts, resulting in inadequate conditions for residents during Hurricane Ida.

In 2023, the government filed a complaint accusing Dean of misappropriating funds over five years leading up to the hurricane. The complaint alleged that residents were forced to endure substandard conditions at an overcrowded warehouse owned by Dean, prompting intervention from the Louisiana Department of Health.

Principal Deputy Assistant Attorney General Brian M. Boynton emphasized accountability: “This settlement demonstrates the department’s continuing commitment to holding accountable those who put their own financial gain over the needs of our nation’s seniors.” U.S. Attorney Ronald C. Gathe Jr highlighted operators' responsibilities: “Nursing home operators like Mr. Dean have an obligation to protect their residents during such events.”

HUD General Counsel Damon Smith warned owners about obligations: “Owners of FHA-insured nursing homes should be on notice that we will hold them accountable when we learn of allegations that they have failed to meet those obligations.” HUD Inspector General Rae Oliver Davis condemned Dean's actions: “He unfairly enriched himself while residents under his charge endured horrid conditions including insufficient food and medical care.”

The case was managed by the Civil Division’s Commercial Litigation Branch, Fraud Section, alongside the U.S. Attorney’s Office for the Middle District of Louisiana with assistance from HUD and its Office of Inspector General.

The Justice Department initiated this investigation as part of its Elder Justice Initiative aimed at combating elder abuse and exploitation.

It is important to note that these claims are allegations only, with no determination of liability made against Bob Dean Jr. or his companies.