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2015-11-05T00:00:00.000Z

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Wrong Forrest Preston?

Mr. Forrest Preston L.

Chief Executive Officer

Life Care Centers of America

Direct Phone: (423) ***-****       

Email: f***@***.com

Life Care Centers of America

3001 Keith Street, NW

Cleveland, Tennessee 37320

United States

Company Description

Life Care Centers of America is committed to being a premier provider of long-term health care. It is our desire to be the facility of choice in any community in which we operate. Our programs, services and facilities must be designed and operated with su ... more

Find other employees at this company (5,116)

Background Information

Employment History

Chairman
Century Park Associates

Owner
Life Care at Home

Chief Executive Officer
Add Lifecare

Owner
Lifecare Centers Of American Inc

Vice President , Chief Compliance Officer and Regulatory Counsel
Eckerd Corporation

Affiliations

Co-Founder
Consolidated Resources Incorporated

Web References (167 Total References)


Feds Withdraw Motion To Add ...

www.chattanoogan.com [cached]

Feds Withdraw Motion To Add Lifecare CEO Preston To False Claims Lawsuit; Say He Will Be Sued Separately Thursday, November 5, 2015 Forrest Preston

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Forrest Preston
The federal government has dropped an effort to add Life Care Centers of America chairman Forrest L. Preston as a defendant in its major "false claims" action in Federal Court in Chattanooga.
Attorneys for the government said, instead, the U.S. will "pursue its claims against Mr. Preston in a separate civil action."
In the motion the government repeated its earlier claim that "since the filing of its complaint, the United States has uncovered evidence that revealed the extent of Mr. Preston's involvement in the management of Life Care, the degree to which he was aware of complaints from his own employees regarding the conduct at issue in this litigation, and the degree to which he ignored corporate formalities and benefited unjustly from Life Care's unlawful conduct."
The government noted that Federal Judge Sandy Mattice held a hearing Oct. 21 and the judge observed that the government could have filed the proposed claims against Mr. Preston in a separate suit."
...
The original motion, filed Aug. 8, also cited "the extent to which Medicare funds paid to Life Care as a result of its submission of false claims have been transferred, directly or indirectly, to Mr. Preston."
It said, "The United States seeks leave to allege a single claim against Preston individually for unjust enrichment."
...
The motion said Mr. Preston owns all the Life Care nursing homes either in whole or part and he was "the ultimate financial beneficiary of all revenues billed and collected, including Medicare and Medicaid funds, by Life Care Centers of America and its affiliated nursing homes" during the term covered by the lawsuit.
It said he "has operated Life Care and its related entities without regard for the separateness between himself and the corporate forms among the entities. As Preston himself explained in a deposition in another case, 'a benefit to me is the corporation. That's synonymous (it) really amounts to moving my own money from (my) own trousers from one pocket to another."
The motion said Life Care is organized as an S-Corporation and all of Life Care's income and losses "are reported on Preston's personal tax returns and are taxed to Preston (rather than at a corporate level)."
It said, "Preston's control over his unitary nursing home business also allowed him to secure significant loans on behalf of Life Care and his other businesses. For example, Life Care and dozens of other Preston-owned entities borrowed hundreds of millions of dollars from GE Capital in December 2010."
The motion said he has the sole authority to appoint and remove any member of Life Care's board of directors without cause and to amend the corporation bylaws at will.
It said he "has further controlled Life Care and its operations by filling open positions on the board with his personal friends and advisors, and at times, even his administrative staff. Preston restricted who could speak directly to the board and what information individuals were allowed to share with the board. Preston required materials to be filtered through him before being shared with the board, and executives were not allowed to speak at board meetings unless called on by Preston directly. Through his actions, Preston dominated Life Care and restricted the board's ability to adequately manage and oversee the company."
It was claimed that he was involved in numerous hiring and firing decisions, including dismissing two compliance officers.
The motion said Mr. Preston, who is now listed as one of the richest men in America, has borrowed more than $50 million from Life Care. It says, "At times, these loans were not approved by the board and had no set repayment terms. Moreover, Life Care did not always secure collateral or other security from Preston."


During an evidentiary hearing on ...

www.chattanoogan.com [cached]

During an evidentiary hearing on Wednesday, Federal Judge Sandy Mattice reiterated his questions about the federal government's late filing of a motion seeking to add Life Care Centers of America chairman Forrest L. Preston as a defendant in its major "false claims" action.

...
Now, prosecution is attempting to push an amendment which would specifically add Mr. Preston, who, according to one account, has a net worth of $2.1 billion, as a defendant in the case.
...
I have a feeling that Mr. Preston is not going to lie down about this."
He added that if the amendment is granted, he expects the defense "Will file a massive motion to dismiss."
...
The current proposed motion says Mr. Preston owns all the Life Care nursing homes either in whole or part and he was "the ultimate financial beneficiary of all revenues billed and collected, including Medicare and Medicaid funds, by Life Care Centers of America and its affiliated nursing homes" during the term covered by the lawsuit.
It says he "has operated Life Care and its related entities without regard for the separateness between himself and the corporate forms among the entities. As Preston himself explained in a deposition in another case, 'a benefit to me is the corporation. That's synonymous (it) really amounts to moving my own money from (my) own trousers from one pocket to another."
The motion says Life Care is organized as an S-Corporation and all of Life Care's income and losses "are reported on Preston's personal tax returns and are taxed to Preston (rather than at a corporate level)."
It says, "Preston's control over his unitary nursing home business also allowed him to secure significant loans on behalf of Life Care and his other businesses. For example, Life Care and dozens of other Preston-owned entities borrowed hundreds of millions of dollars from GE Capital in December 2010."
The motion says he has the sole authority to appoint and remove any member of Life Care's board of directors without cause and to amend the corporation bylaws at will.
It says he "has further controlled Life Care and its operations by filling open positions on the board with his personal friends and advisors, and at times, even his administrative staff. Preston restricted who could speak directly to the board and what information individuals were allowed to share with the board. Preston required materials to be filtered through him before being shared with the board, and executives were not allowed to speak at board meetings unless called on by Preston directly.
Through his actions, Preston dominated Life Care and restricted the board's ability to adequately manage and oversee the company."
It was claimed that he was involved in numerous hiring and firing decisions, including dismissing two compliance officers.
The motion says Mr. Preston, who is now listed as one of the richest men in America, has borrowed more than $50 million from Life Care. It says, "At times, these loans were not approved by the board and had no set repayment terms. Moreover, Life Care did not always secure collateral or other security from Preston."


The government is planning to add ...

www.themountainmail.com [cached]

The government is planning to add Forrest Preston, CEO, sole shareholder and chairman of the board of Life Care Centers of America, as a defendant in the case. The government says it has evidence he was heavily involved with and benefited from the company’s alleged Medicare and Tricare fraud.

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More about Forrest Preston
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Posted in News on Friday, October 9, 2015 9:21 am. | Tags: Forrest Preston, Life Care Centers Of America, Medicare, Tricare Fraud


Life Care Centers founder and ...

www.mcknights.com [cached]

Life Care Centers founder and CEO Forrest Preston has been named by federal prosecutors in an amended False Claims Act lawsuit against the company, claiming he benefitted from alleged Medicare overbilling.


Life Care Asks Judge Not To ...

www.chattanoogan.com [cached]

Life Care Asks Judge Not To Make Its Leader, Forrest Preston, A Defendant In "False Claims" Action

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Attorneys for Life Care Centers of America are asking in a 20-page motion that its founder and still leader, Forrest Preston, not be made a defendant in a False Claims Act lawsuit in Federal Court.
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The government said, as it further looked into the case, that Mr. Preston, a Cleveland, Tn., billionaire, had been intricately involved in the company's operation. It says, as it further looked into the facts, it found that Mr. Preston had been "unjustly enriched" by the alleged false claims.

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