Attorney General Kris Mayes has amended the ongoing lawsuit against Heritage Village Assisted Living to include racketeering claims. The new complaint seeks court control over two additional facilities, Visions Mesa and Visions Apache Junction, both owned by the same proprietors as Heritage Village.
The amendments come after evidence was found during litigation and through investigations led by Peter Davis, the court-appointed receiver for Heritage Village. "My office took decisive action earlier this year to protect the residents of Heritage Village by barring the owners from operating the facility," stated Attorney General Mayes. "Since then, we've discovered just how critical those actions were."
The original lawsuit was filed in March 2024, leading to Peter Davis's appointment as receiver. His objectives included improving resident care and preventing license revocation by Arizona Department of Health Services (ADHS). Davis succeeded in engaging Mission Management Services LLC for better care and reached a settlement with ADHS to retain the facility's license.
New findings revealed that more than $2.9 million was diverted from Heritage Village accounts under orders from owners Gary and Tracy Langendoen. Funds intended for resident care were used to pay debts related to other properties or transferred within their real estate network. Transfers included $890,000 moved to Visions Apache Junction and $52,000 to Visions Mesa.
Additionally, an insurance policy cancellation occurred when premiums went unpaid; despite raising $200,000 from investors for reinstatement, Gary Langendoen did not remit these funds. Consequently, alternative coverage cost over $500,000.
It was also discovered that applications submitted between October 2022 and August 2023 contained forged documents under Arizona law. Meanwhile, residents suffered neglect while funds were diverted elsewhere.
"This much money moving between facilities indicates that many...are in dire financial straits," said Attorney General Mayes. "We are asking the court to remove the Langendoens from control...before they reach a crisis point."
The updated lawsuit now seeks treble damages against Gary Langendoen, Tracy Langendoen, and two employees for alleged racketeering activities such as forgery and fraud.
"Our most important task is protecting vulnerable residents...and bringing accountability," said Attorney General Mayes.
The case is State of Arizona v. Heritage Village Bldg2 LLC et al., Maricopa County case number CV2024-005359. Shane Ham and Liza Lawson Risoldi are handling it legally with Peter S. Davis nominated as receiver at additional facilities if approved.
"As I said when we filed this lawsuit...assisted living facilities should be run by qualified health care providers," reiterated Attorney General Mayes regarding facility management concerns amidst widespread fraud revelations.