The state has sued the owners of a Des Moines nursing home and is asking a judge to review the home’s finances. Bill Brauch, head of the consumer protection division in the Iowa Department of Justice, says the owners of Heather Manor placed residents at risk because of their financial maneuverings. The state is asking the court to oversee any change in services at Heather Manor and to fine the owners of the facility. The state alleges the owners of the home were both landlord and tenant because they bought the home, then created a non-profit which they also ran to lease the care facility. Brauch says the owners haven’t honored their obligation to protect the charitable trust or non-profit they created to run the home. By signing on both sides of the lease the defendants benefitted themselves at the expense of the home and its residents, according to Brauch. “We think that really creates a potential for disaster for the residents of the facility and potentially could lead to its closure,” Brauch says. The lawsuit seeks restitution for residents of the nursing home for lodging overcharges. The owners of the home could not be reached for comment.
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