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"Owner of area nursing homes faces charges in fraud case"

Original source:

The Sacramento Bee

Published: Thursday, Dec. 18, 2008 | Page 2B
– Bobby Caina Calvin and Sheila A. Kern

The owner of six capital-area nursing homes faces 18 felony counts in connection with an alleged scheme that authorities say siphoned thousands of dollars from the state Medi-Cal program to help finance personal expenses, including tennis lessons, vacations and a $26,568 home remodeling project.

John Lund is scheduled to be arraigned Jan. 13 in Sacramento Superior Court and is free on $20,000 bail. He was arrested Dec. 9 in Santa Barbara County, where he lives, under a warrant obtained by the state Department of Justice.

Lund owns one nursing home in Roseville and five in Sacramento, including Asbury Park Nursing and Rehabilitation on Fair Oaks Boulevard, Sherwood Health Care Center on Elvas Avenue, and Saylor Lane Health Care Center on Folsom Boulevard.

The three facilities were named in the felony complaint filed Dec. 7.

An investigation was launched a year ago after auditors said they discovered irregularities in Medi-Cal cost reports submitted by Lund and his companies.

Lund faces six counts each of perjury, making false claims and Medi-Cal fraud. He declined to comment.