Nursing home operator American Senior Communities’ former CEO James Burkhart was among nearly 1,500 people whose sentences were commuted as part of the largest single-day act of clemency in modern history by President Joe Biden, who also issued 39 pardons on the same day.
Burkhart led a $19.4 million fraud scheme involving nursing homes owned by Marion County’s public health system in Indiana. Along with several co-conspirators, Burkhart engaged in fraud and a kickback scheme that involved shell companies and stolen money from the Health & Hospital Corporation of Marion County, a public health agency that owns nursing homes and operates Eskenazi hospital, also in Indiana, according to a report in the Indy Star.
The White House did not provide specific reasons for any commutations in the clemency announcement late last week. A commutation reduces or eliminates a person’s prison sentence; a pardon forgives all offenses and restores civil abilities like voting, holding state or local office and sitting on a jury.
Individuals with commuted sentences were mostly placed on home confinement during the pandemic and had shown they can successfully reintegrate into family and community settings, the White House said in a statement. Burhart had been serving his sentence at a minimum security prison in Montgomery, Alabama and is currently assigned to a residential reentry management field office in Milan, Michigan, according to the Federal Bureau of Prisons. Burkhart’s release date is Dec. 22.
The former CEO was indicted in October 2016 after his Carmel, Indiana home was raided in September 2015; ASC fired him and Burkhart’s brother, the COO at the time, and the then CFO resigned.
Burkhart was sentenced to 9.5 years in federal prison after pleading guilty in 2018 to conspiracy to commit fraud, conspiracy to violate the health care anti-kickback statute, and money laundering. He was found guilty of funneling money to purchase luxury goods for himself over a 6-year timespan and was ordered to forfeit seized assets and pay restitution, along with serving three years of supervised release once his prison sentence was done.