4 Residential Care Facilities Placed In Temporary Receivership After Complaints

Nov 9, 2018

Update — Wednesday, Nov. 14 at 2:01 p.m.

Following the placement of three Vermont residential care homes into temporary receivership last week, a fourth one owned by Texas-based East Lake Capital Management will now also be run by a temporary receiver appointed by the state. 

According to the Vermont Attorney General's Office, Harborview — located in South Burlington — will be managed by a receiver until a court decides whether to make the receivership permanent.

Original story — Published Friday, Nov. 9, 2018 at 3:11 p.m.

Vermont Attorney General TJ Donovan announced Friday that the state is intervening in how three residential care homes in South Burlington and St. Albans are managed. The action came after staff, residents and their families filed complaints with the state.

The three properties now in temporary receivership are Allenwood at Pillsbury Manor and Pillsbury Manor South in South Burlington and Homestead at Pillsbury in St. Albans. All are owned by Andrew White of Dallas, Texas.

There are more than 100 residents at the properties combined.

According the AG's office, the complaints include failure to deposit rent checks, concerns over staffing and food insecurity.

“In fact the state of Vermont ... had to front the money this week in order to pay the food vendor to have food delivered today for these facilities,” said Donovan. “I believe the state of Vermont paid over $17,000 to make sure that there was adequate food."

Donovan said attempts to address the complaints through the standard regulatory process were not successful and “it became clear that we needed to go to court in an attempt to appoint a receiver.”

On Wednesday, in Washington Superior Court, Judge Mary Teachout granted the state’s request for a temporary receivership. Donovan said Douglas Wolinsky, an attorney at Primmer Piper Eggleston & Cramer PC, was named as the receiver.

Donovan said Wolinksy’s job is to stabilize the situation.

“This includes the timely delivery of food and other critical services, providing adequate staffing needed to ... serve and care for the residents and implement appropriate business practices like the processing of residents' rent payments and timely payment to vendors,” Donovan said.

Donovan said there will be hearing Wednesday to determine if the properties will be permanently overseen by the receiver.

When asked if the state would be pursuing a criminal investigation, Donovan said the state is focused “right now on making sure that … the basic needs of residents are addressed.”