Two More Sentenced in ASC Fraud Scheme

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INDIANAPOLIS -

A federal judge has sentenced two more people for their roles in the fraud scheme involving American Senior Communities. The defendants in Monday's sentencing hearings include former ASC Chief Financial Officer Steven Ganote and Josh Burkhart, brother of former ASC Chief Executive Officer James Burkhart.

U.S. District Court Judge Tanya Walton Pratt sentenced Ganote to 60 months in prison and two years of supervised release. He must also pay $7 million in restitution for his role in the scheme, which defrauded ASC, the Health & Hospital Corp. of Marion County, and others of more than $19 million.

Josh Burkhart was sentenced to four months in prison, two years of supervised release and $420,000 in restitution. His brother was sentenced late last month to more than nine years in prison and must pay full restitution.

U.S. Attorney Josh Minkler's office says the defendants hatched a scheme to accept kickbacks from ASC vendors and shell companies. Former ASC Chief Operating Officer Daniel Benson was sentenced last week to 57 months in prison for this role in the scheme.

One final defendant, David Mazanowski, awaits sentencing. His hearing is scheduled for 2:00 p.m. Tuesday.

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