The state of Iowa has filed a lawsuit against the owners of a Des Moines nursing home accusing them of consumer fraud.
Iowa Attorney General Tom Miller in the civil lawsuit is asking for a judicial review of the finances of Heather Manor in Des Moines. He is accusing the owners of the facility of acting as both landlord and tenant because they purchased the home, then entered into a lease with a nonprofit company they also controlled to operate the facility. The nonprofit is called Horace Mann Home for the Aged Inc.
The owners failed to honor their obligation to protect the charitable trust or nonprofit they created to run the home, according to a spokesman for the Attorney General’s Consumer Protection Division. By signing on both sides of the lease the defendants benefited themselves at the expense of the home and its residents. The situation puts residents of the facility at risk and potentially could lead to closure of the facility, according to Miller.
The lawsuit seeks restitution from defendants Carroll Robert McClurg, Larry A. Weide, and Daniel Lee Spencer for residents of the nursing home for lodging overcharges. Heather Manor L.L.C., the defendants’ company, is also named in the lawsuit.
