Man Agrees to $8.2M Judgment Over Misuse of Nursing Home Funds During Hurricane Ida

Bob Dean Jr. and his companies will pay $8.2 million after misusing nursing home funds during Hurricane Ida, leaving residents stuck.Photo byBrian McGowanonUnsplash

The Justice Department (DOJ) announced today that Bob Dean Jr. and several companies he owned have agreed to an $8.2 million consent judgment to resolve allegations of financial misconduct.

These allegations stemmed from the evacuation of four nursing homes in Louisiana during Hurricane Ida in August 2021.

The nursing homes involved are Maison De’Ville Nursing Home in Houma and Harvey, Maison Orleans Healthcare in New Orleans, and West Jefferson Health Care Center in Harvey—all owned and operated by Dean and insured by the Federal Housing Administration (FHA).

The United States alleged that in the five years prior to Hurricane Ida, Dean misappropriated funds meant for evacuation preparations, diverting them to personal expenses, which left the nursing homes ill-prepared for the hurricane.

As a result, the residents were housed in an overcrowded, unsanitary warehouse owned by Dean, leading to poor conditions, inadequate care, and eventually the revocation of the homes' licenses by the Louisiana Department of Health, the department says.

“This settlement demonstrates the department’s commitment to holding accountable those who prioritize financial gain over the needs of our nation’s seniors,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division.

U.S. Attorney Ronald C. Gathe Jr. emphasized the importance of nursing home operators’ duty to protect their residents, particularly during natural disasters. The settlement, he said, will ensure that those entrusted with the care of vulnerable populations take their responsibilities seriously.

HUD General Counsel Damon Smith and Inspector General Rae Oliver Davis highlighted the misuse of funds and failure to maintain the health and safety of the residents, pledging to hold accountable those who violate the obligations of FHA-insured nursing homes.

This judgment aims to ensure justice for the affected residents and prevent future misconduct in the industry, according to the DOJ.