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This profile was last updated on 11/5/15  and contains information from public web pages and contributions from the ZoomInfo community.

Mr. Forrest L. Preston

Wrong Forrest L. Preston?


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...   more

Employment History

115 Total References
Web References
Feds Withdraw Motion To Add ..., 5 Nov 2015 [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
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."
Forrest Preston now ..., 26 Aug 2015 [cached]
Forrest Preston now defendant BRIAN GRAVES Banner Staff Writer Posted 8/26/15
The attorneys representing Life Care Centers of America have filed a response to an amendment by U.S. attorneys adding Forrest Preston, Life Care founder and chairman of the board, as a defendant …
Forrest Preston now defendant
Forrest Preston
Forrest Preston Despite this extensive investigation, the Government made habitual requests for extensions of the [False Claims Act] election period, and took approximately 24 times as long as the statute allows to make up its mind about whether to intervene." - Life Care counsel response BRIAN GRAVES Banner Staff Writer
The attorneys representing Life Care Centers of America have filed a response to an amendment by U.S. attorneys adding Forrest Preston, Life Care founder and chairman of the board, as a defendant in the case accusing the business and Preston of submitting claims for medically unnecessary rehabilitation services.
Filed Aug. 21 in U.S. District Court in Chattanooga, Life Care's attorneys claim that by moving to add Preston as a defendant, "the Government seeks to change substantially the nature and scope of this case 7 years after it was filed, 7 years after the Government began investigating the facts and documents that purportedly support the proposed amended complaint, 5 years after the Government made the decision to intervene, and almost 3 years after the Court put the Government on notice that it must make timely intervention elections according to 60-day period proscribed by the False Claims Act."
"When it finally made up its mind in October 2012, the Government expressly declined to intervene in the Relator's claims against Mr. Preston. Despite this election, the Government now seeks to use Rule 15 as a means to intervene as to Mr. Preston well after the generously extended statutory deadline."
Counsel also stated the government had "ample opportunity" to decide whether to sue Preston, and chose not only to decline intervention, but also approved dismissal of the claims against him personally.
They also state the government admits to Preston's status in the business, but is suggesting it had learned in discovery the "extent" or "degree" of circumstances "that allegedly support an unjust enrichment claim."
The filing says the government obtained all but one of the documents in the amended complaint between 2008 and 2011, obtaining the last document in discovery in May 2014 - more than a year before filing the Motion to Amend.
"Even if these purported new extent/degree facts were recently discovered (which Life Care denies), the Government did not base the unjust enrichment count of the proposed amended complaint on them; it just added Mr. Preston's name to the allegations against Life Care," the filling states.
"Whether the Government's Motion is viewed as an effort to intervene or to amend, it is the product of undue delay, bad faith, and dilatory motive, and amendment would not only unfairly prejudice Life Care and Mr. Preston but also significantly delay resolution of this case, thereby further burdening the Court's docket," Life Care's counsel argues.
Forrest L. Preston , ..., 16 July 2014 [cached]
Forrest L. Preston , Chairman and CEO of Life Care Home Health Inc. and Life Care Centers of America Inc. , said LHC "is a strong provider of high-quality health care services.
"As we pursue a primary strategic focus on our core facilities-based operations, we are very pleased to be selling these home health agencies to an organization that we are confident will continue to provide our patients outstanding care and service, while giving our agency employees a great place to continue their careers," Preston said in a statement today.
The announcement is made by Forrest ..., 24 Oct 2015 [cached]
The announcement is made by Forrest L. ...
The announcement is made by Forrest L. Preston, president of Century Park.
"Jenny Graham has earned this position through distinguished performance since joining Century Park," Preston said.
Life Care Centers founder and ..., 16 Aug 2015 [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.
Prosecutors added a count of “unjust enrichment� against Preston, saying that he profited from the alleged Medicare fraud at the core of two whistleblower suits filed against the company in 2008. The suits weren't made public until late 2012.
Court documents also claim Preston, who founded Life Care Centers in 1970 and remains its sole shareholder, exerted “authoritarian control� over the company, and used its funds to give himself loans worth up to $50 million. Life Care operates 260 senior housing and skilled nursing facilities in 28 states.
When reached for comment, Life Care officials referenced a statement released to employees regarding the situation, which said the motion “adds no new claims whatsoever.�
“It is puzzling that the government would seek to include Mr. Preston as a party at this late date when it made a conscious choice not to do so at the outset,� the statement reads. “Life Care will not bow to government pressure by way of including Mr. Preston in the case or otherwise, and will continue to vigorously defend the lawsuit and stand up for the rights of its patients to obtain full rehabilitation therapy.�
Government prosecutors say the amendment came about due to the discovery of information that shows Preston had more direct ties to the operations of the company, the Chattanooga Times Free Press reported.
“It was not until discovery that the United States learned of 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, the degree to which he ignored corporate formalities, and the degree to which he benefited unjustly from Life Care's unlawful conduct,� prosecutors wrote in an Aug. 6 filing cited by the Chattanooga Times Free Press.
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