Nursing home owner Bob Dean sued again — now for misusing HUD funds

Nursing home owner Bob Dean, who recently settled a class-action lawsuit for $12.5 million, is being sued by the U.S. government for allegedly misallocating $4 million in Federal Housing Administration funds.

The complaint, filed in the U.S. District Court for the Middle District of Louisiana, alleges that between 2016 and 2021, Mr. Dean required four nursing homes he operated to pay "rent" on an industrial warehouse, according to a Jan. 12 Justice Department news release. The rent, totaling more than $1 million, was paid to one of his corporate entities. He allegedly funneled much of that money into his personal bank accounts.

This potentially contributed to the botched evacuation of more than 800 residents into the warehouse during Hurricane Ida, which recently resulted in a $12.5 million settlement, the Justice Department said. 

Following the botched evacuation and his licenses being revoked, the complaint alleges Mr. Dean instructed his bookkeeper to sweep all the nursing homes' bank accounts and transfer millions of dollars into his personal accounts. He allegedly used that money to purchase personal goods and services. It is estimated Mr. Dean misspent and misallocated more than $4 million, the Justice Department said.

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