The Conway man who operated five Arkansas nursing homes seized last fall by the state was arrested Monday on a felony property theft charge, court filings show.
Keith Head is charged with a Class B felony, which carries a potential sentence of 5 to 20 years. The arrest warrant was issued in Nevada County, home to one of Head's former nursing homes, Prescott Manor.
Investigators in Attorney General Leslie Rutledge's unit over Medicaid fraud accused Head of transferring more than $43,000 from the Prescott Manor's trust fund account for residents into business accounts for payroll, operating costs and petty cash, according to an affidavit.
"Head was responsible for the safekeeping of patient funds in the facilities; however, he knowingly took unauthorized control of the property of [76] long term care facility residents by using their funds without their consent, totaling $43,475.00," the affidavit says.
Rutledge's office provided the court filings in response to an Arkansas Democrat-Gazette inquiry.
Head did not immediately respond to a phone message. An attorney who has represented him in civil matters said he was not aware of the arrest.
Head also operated nursing homes in Jonesboro, Ola, Star City and Trumann when the Arkansas Department of Human Services used its emergency "receivership" tool to take control of the properties last fall.
In court filings, the Human Services Department portrayed the homes as in a financial crisis. They cited payroll issues, utility shut-off notices, dwindling medical supplies and a lack of cash on hand.