SUSANVILLE, California (STPNS) -- Last October, California?s Department of Social Services filed a scathing action against Sunwest Management, an Oregon-based corporation that manages residential health care facilities for the elderly and it?s top executive officers.

Sunwest Management, one of the largest mangers of residential health care facilities in the country, oversees 15 operations in California, including Eagle Lake Village Assisted Living and Memory Care on Paul Bunyan Road near Eagle Lake.

Typically, Sunwest manages the facilities, which are owned by investors. The corporation manages about 150 facilities in 35 states.



The Eagle Lake facility is not named in the state action, even though the top Sunwest Management team are named as individuals.

Dr. Melody Chatelle, a spokesperson for Sunwest, said the Eagle Lake facility?s last annual survey was deficiency free ? meaning the state surveyors found no negative outcomes of any kind as a result of their in-depth review.  She said this is an almost unheard of occurrence in today?s difficult regulatory environment.

But another Sunwest-managed facility ? Paragon Gardens in Mission Viejo ? has drawn the attention of the legal department of the Department of Social Services. The agency seeks to revoke the facility?s license and take action against a number of administrators and some of the company?s top administrators.

A spokesman with the Department of Social Services declined to comment on the action, but provided a copy of the complaint ? which is public information ? in response to requests for information.

According to the state?s complaint, the Sunwest facility violated a number of Health and Safety Code and other regulations regarding client personal rights, care and supervision, level of care, acceptance and retention of clients, preadmission appraisals, reporting, false claims and conduct inimical.

The state alleges the charges are aggravated by a number of other factors. The facility was cited for insufficient staff in June 2005, November 2005, January 2006, June 2006 and August 2006.

According to the state, code violations were discussed with administrators and senior company officials who failed to correct the problems.

Other issues included the facility?s call system, delayed egress exit doors in dementia wards, untrained employees, inadequate care and supervision, improper acceptance and retention, unreported medical conditions, improper eviction of a facility client, personal accommodations/maintenance and operation/personal rights, client records, failure to provide criminal record clearances, administrator qualifications and failure of the governing body.

In addition to the revocation of the Paragon Gardens? license, the state seeks to exclude some of Sunwest?s top executives from ?employment in, presence in, and contact with clients of any facility licensed by the department.?

The top officials include Sandra Pelusi-Lindow, the facility?s administrator from February to August 2006; Deana Altman-Nelson, Vice-President of Operations, Sunwest Management; Eric W. Jacobsen, a partner of Paragon Gardens, a limited partner of Mission Viejo Assisted Living and a director of Sunwest Management; Joseph Morin, a partner of Paragon Gardens and a member of Mission Viejo Assisting Living; Michael J. Deines, a partner of Paragon Gardens and a member of Mission Viejo Assisted Living; J. Wallace Gutzler, a partner of Paragon Gardens, a member of Mission Viejo Assisted Living and a director of Sunwest Management; and Maria Susette Bonilla Ambrosio, a caretaker employee at Paragon Gardens.

The state also seeks to have Pelusi-Lindow and Linda Padilla (the facility?s administrator from July 2005 to February 2006) decertified as a residential care facility for the elderly administrators.

Other individuals named in the action include Jon. M. Harder, managing Limited Partner of Mission Viejo Assisted Living and a director of Sunwest Management; Darryl E. Fisher, a partner in Paragon Gardens, a managing limited partner of Mission Viejo Assisted Living and a partnership director for Sunwest Management.

The state alleges the facility and its officers ?collectively and individually chronically failed to operate, administer and supervise the residential care facility for the elderly, known as Paragon Gardens Assisted Living Community within licensing statutes and regulations.?

Among the state?s more horrific allegations are that a dementia client left the facility unnoticed and was never found, that staff members slept during their shift, that the facility was infested with mice who left dropping in the client?s food and that staff did not understand the meaning of incontinent care and were unable to provide such care.

Class action suit

If that?s not enough, a Southern California law firm has filed a class action lawsuit against Sunwest Management, the investor-owned companies and 250 does alleging unlawful business practices, unfair and fraudulent business practices, false advertising and violations of Consumer Legal Remedies Act.

The Eagle Lake Village Assisted Living and Memory Care on Paul Bunyan Road near Eagle Lake is named in the class action suit, but there are no allegations against the facility included in the court documents.

In a statement to the media, Chatelle wrote, ?We deeply regret the filing of this frivolous lawsuit, and adamantly disagree with its content.  Our company is proud of our long-standing history of service in the communities in which we are privileged to operate. We look forward to addressing the issues in the lawsuit via the judicial process, and we are confident that the true facts of the situation will come to light. Until then, because this matter now represents a pending legal issue, additional comment at this time would be inappropriate.?

Administrators at the Eagle Lake facility declined to comment on the suit and referred questions to Chatelle.

?We believe Paragon Gardens is typical of a Sunwest facility,? said plaintiff attorney Stephen Garcia. ?Since June 2005, Paragon Gardens earned 57 notices of deficiencies, all of which were Type A violation, considered to be the most serious. On its Web site, Sunwest Management claims to operate 150 ?communities? nationwide. How many Paragon Gardens do they have? Basically we believe Sunwest?s corporate strategy, policy and practice is to maximize profit at the expense of the elderly and vulnerable people it claims to serve. The claims this company makes on its Web site and in its promotional materials are a far cry from the reality where facilities are understaffed and have a long history of citations for deficiencies.?

In addition to the Eagle Lake and Mission Viejo facilities, Sunwest manages other California facilities in Chula Vista, Clearlake, Crescent City, Fortuna, Healdsburg, Merced, Modesto, Red Bluff, Roseville, Sacramento, Ukiah, Vacaville and Yreka.

For more information on the class action suit, call Garcia at (800) 281-8515.