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Department of
SOCIAL SERVICES

Community Care Licensing


COMPLAINT INVESTIGATION REPORT

Facility Number: 565850112
Report Date: 07/12/2023
Date Signed: 07/12/2023 12:44:35 PM

Substantiated


STATE OF CALIFORNIA - HEALTH AND HUMAN SERVICES AGENCY

COMPLAINT INVESTIGATION REPORT		CALIFORNIA DEPARTMENT OF SOCIAL SERVICES
COMMUNITY CARE LICENSING DIVISION
CCLD Regional Office, 21731 VENTURA BLVD. #250
WOODLAND HILLS, CA 91364
This is an official report of an unannounced visit/investigation of a complaint received in our office on
09/21/2022 and conducted by Evaluator Kasandra Lopez
COMPLAINT CONTROL NUMBER: 29-AS-20220921132620
FACILITY NAME:REGENCY PALMS OXNARDFACILITY NUMBER:
565850112
ADMINISTRATOR:KENNETH MAHLERFACILITY TYPE:
740
ADDRESS:1020 BISMARK LANETELEPHONE:
(805) 247-0227
CITY:OXNARDSTATE: CAZIP CODE:
93033
CAPACITY:127CENSUS: 64DATE:
07/12/2023
ANNOUNCEDTIME BEGAN:
10:00 AM
MET WITH:Ken MahlerTIME COMPLETED:
12:45 PM
ALLEGATION(S):
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Facility is in financial distress.
INVESTIGATION FINDINGS:
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Licensing Program Analyst (LPA) KaSandra Lopez conducted a subsequent complaint visit to deliver final findings for the above allegation. During today’s visit, LPA Lopez met with Administrator Ken Mahler and explained the reason for the visit.
On 09/21/2022, the Department received a complaint regarding an allegation “Facility is in financial distress”. It was alleged that the facility had filed bankruptcy. The Reporting Party was concerned how the bankruptcy would affect the residents in care.
On 10/20/2022, a Solvency Audit request was made to the Community Care Licensing Division (CCLD) Audit Section and assigned to Auditor Jorge Mojica to investigate the allegation.
Today a scheduled meeting was held at the facility with Administrator Ken Mahler, and LPA Lopez along with Christine Hanna, Managing Member of Global Premier Regency Palms Oxnard LP, Sarang Tatimatla Chief Restructuring Officer, and CCLD General Auditor III Jorge Mojico via video call to discuss the audit findings. Report continued on LIC 9099-C.

Substantiated
Estimated Days of Completion:
SUPERVISORS NAME: Desaree Perera
LICENSING EVALUATOR NAME: Kasandra Lopez
LICENSING EVALUATOR SIGNATURE:

DATE: 07/12/2023
I acknowledge receipt of this form and understand my licensing appeal rights as explained and received.
FACILITY REPRESENTATIVE SIGNATURE:

DATE: 07/12/2023
This report must be available at Child Care and Group Home facilities for public review for 3 years.
LIC9099 (FAS) - (06/04)
Page: 1 of 5
Control Number 29-AS-20220921132620
STATE OF CALIFORNIA - HEALTH AND HUMAN SERVICES AGENCY

COMPLAINT INVESTIGATION REPORT (Cont)		CALIFORNIA DEPARTMENT OF SOCIAL SERVICES
COMMUNITY CARE LICENSING DIVISION
CCLD Regional Office, 21731 VENTURA BLVD. #250
WOODLAND HILLS, CA 91364
FACILITY NAME: REGENCY PALMS OXNARD
FACILITY NUMBER: 565850112
VISIT DATE: 07/12/2023
NARRATIVE
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On 09/29/2022, between 10:58am and 3:45pm, Licensing Program Analyst (LPA) KaSandra Lopez conducted an unannounced initial complaint investigation inspection at the facility regarding the above allegation. LPA Lopez met with Administrator Ken Mahler at 10:58am and explained the reason for the inspection. During the inspection, the LPA conducted an interview with the Administrator. The LPA also conducted an interview with Christine Hanna at 11:43am, who was identified as a Managing Member of Global Premier Regency Palms Oxnard, LP and visiting the facility. A physical plant tour of the facility began at 11:29am. The LPA observed the facility to have a seven-day supply of non-perishable food and two-day supply of perishable food, along with a sufficient supply of emergency water, personal protective equipment, and cleaning supplies. During the interview the Administrator denied the facility ever being without utilities, food, or supplies. The LPA determined further investigation was needed.

Auditor Mojica reviewed documents which included the facility Income and Operating Expense statement for November 2022, rent roll revenues, resident census, billing statements for utilities for the period of 04/01/2022 through 10/31/2022, food expenses, lease agreement, balance sheet review reflecting assets and liabilities, bank statements, Paycheck Protection Program (PPP) loan letter, bankruptcy documents, management agreement, credit reports, worker’s compensation and liability insurance policies. The auditor requested copies of lease expenses and State and Federal tax forms which were not provided.

Per review of the lease agreement, the licensee is to pay an amount equal to 100% of debt service on the property. However, the licensee did not report the lease expense. The licensee explained “lease payments were being accrued through lease-up, therefore, there has not been any payments made on the lease to date”. The auditor requested a list of lease expenses, but the licensee did not provide. The licensee is also obligated to pay real estate taxes (property taxes). However, the licensee did not report property taxes, only reported personal property tax.

The bank statements revealed the licensee’s cash reserves varied during the period and bank statements showed a negative balance of $2,986.14 as of November 2022. The licensee had no available cash reserves. Per review of the utility statements provided, the licensee paid vendors timely and in full. The auditor verified the licensee maintains the required worker’s compensation and liability insurance coverage. The investigation revealed the licensee did not file State or Federal Tax forms and has not paid property taxes. The licensee reported $13,839 food costs in the Income and Operating Expense statement. The auditor calculated the monthly food costs which were below the USDA guideline amounts of $14,061.90.
SUPERVISORS NAME: Desaree Perera
LICENSING EVALUATOR NAME: Kasandra Lopez
LICENSING EVALUATOR SIGNATURE:

DATE: 07/12/2023
I acknowledge receipt of this form and understand my licensing appeal rights as explained and received.
FACILITY REPRESENTATIVE SIGNATURE:

DATE: 07/12/2023
LIC9099 (FAS) - (06/04)
Page: 2 of 5
Control Number 29-AS-20220921132620
STATE OF CALIFORNIA - HEALTH AND HUMAN SERVICES AGENCY

COMPLAINT INVESTIGATION REPORT (Cont)		CALIFORNIA DEPARTMENT OF SOCIAL SERVICES
COMMUNITY CARE LICENSING DIVISION
CCLD Regional Office, 21731 VENTURA BLVD. #250
WOODLAND HILLS, CA 91364
FACILITY NAME: REGENCY PALMS OXNARD
FACILITY NUMBER: 565850112
VISIT DATE: 07/12/2023
NARRATIVE
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On 08/16/2022, the licensee filed Chapter 11 bankruptcy, also known as a “reorganization” bankruptcy to reorganize the debtor’s business affairs, debts, and assets. Per the bankruptcy documents provided, the debtor, Global Premier Regency Palms Oxnard LP, owns both the licensee (as Subsidiary) and the building/property (as Principal Asset). The address is listed as the facility address located at 1020 Bismark Way in Oxnard, CA. Secured creditors hold liens on the property, which provides for the property to be sold in case of default in order to satisfy the debt.

During the investigation it was noted the licensee previously paid a monthly management fee of $15,000 to Meridian Senior Living Management to oversee the operations of the facility. As of 03/12/2023, the licensee decided to transition operations to “owner operated” and no longer uses the management company.

Based on the information obtained and reviewed, the Department has determined the licensee has not established a financial plan that complies with the financial requirements contained in CCR, Title 22, Division 6, Chapter 8, Article 4, Section 87213 Finances. This is evidenced by the licensee’s monthly food expenses reported were below the USDA guidelines; the November 2022 operating loss of $54,336; the licensee did not maintain sufficient cash reserves and had negative cash balance of $2,986.14 as of November 2022; and the licensee did not file State or Federal taxes nor paid property taxes, which are included in the bankruptcy documents. Therefore, the allegation “Facility is in financial distress” is deemed Substantiated at this time.

Pursuant to Title 22, California Code of Regulations, the following deficiencies are cited (refer to LIC 9099-D). Exit interview conducted, appeal rights discussed, and a copy of this report issued.

Please see the details of the plan of correction of the following page.
SUPERVISORS NAME: Desaree Perera
LICENSING EVALUATOR NAME: Kasandra Lopez
LICENSING EVALUATOR SIGNATURE:

DATE: 07/12/2023
I acknowledge receipt of this form and understand my licensing appeal rights as explained and received.
FACILITY REPRESENTATIVE SIGNATURE:

DATE: 07/12/2023
LIC9099 (FAS) - (06/04)
Page: 3 of 5
Control Number 29-AS-20220921132620
STATE OF CALIFORNIA - HEALTH AND HUMAN SERVICES AGENCY

COMPLAINT INVESTIGATION REPORT (Cont)		CALIFORNIA DEPARTMENT OF SOCIAL SERVICES
COMMUNITY CARE LICENSING DIVISION
CCLD Regional Office, 21731 VENTURA BLVD. #250
WOODLAND HILLS, CA 91364
FACILITY NAME: REGENCY PALMS OXNARD
FACILITY NUMBER: 565850112
VISIT DATE: 07/12/2023
NARRATIVE
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Provide to CCLD Audits Section by July 31, 2023:

1. A budget showing all anticipated income and expenses for each month, projected for 12 months beginning July 1, 2023 through June 30, 2024.

2. By the 3rd week following each quarter of the period, beginning July 1, 2023 thru June 30, 2024, provide to Audits Section:

· An income statement (LIC 401 or equivalent) - for the 3rd month of the quarter.
· Savings and Checking bank statements (accounts used in organization’s operations) – for each month in the quarter.
· Resident Census for each month in the quarter.
· Other information and documents to be requested, as needed.

Source documents used to prepare the income statement must be provided. Auditor must be able to vouch reported revenues and expenditures to source documents provided.

For example, Income Statement and accompanying support for quarter ending September 30, 2023 are due to Audits Section October 16, 2023 by COB.

3. Quarterly financial reporting is to continue for a period of 2 quarters (to December 31, 2023), or until it is evident that the licensee has a financial plan that satisfies CCR Section 87213.”
SUPERVISORS NAME: Desaree Perera
LICENSING EVALUATOR NAME: Kasandra Lopez
LICENSING EVALUATOR SIGNATURE:

DATE: 07/12/2023
I acknowledge receipt of this form and understand my licensing appeal rights as explained and received.
FACILITY REPRESENTATIVE SIGNATURE:

DATE: 07/12/2023
LIC9099 (FAS) - (06/04)
Page: 4 of 5
Control Number 29-AS-20220921132620
STATE OF CALIFORNIA - HEALTH AND HUMAN SERVICES AGENCY

COMPLAINT INVESTIGATION REPORT (Cont)		CALIFORNIA DEPARTMENT OF SOCIAL SERVICES
COMMUNITY CARE LICENSING DIVISION
CCLD Regional Office, 21731 VENTURA BLVD. #250
WOODLAND HILLS, CA 91364

FACILITY NAME: REGENCY PALMS OXNARD
FACILITY NUMBER: 565850112
DEFICIENCY INFORMATION FOR THIS PAGE:
VISIT DATE: 07/12/2023
Deficiency Type
POC Due Date /
Section Number
DEFICIENCIES
PLAN OF CORRECTIONS(POCs)
Request Denied
Type B
07/12/2023
Section Cited
CCR
87213
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87213 Finances The licensee shall have a financial plan that conforms to the requirements.. and that assures sufficient resources to meet operating costs for care of residents…..This requirement is not met as evidenced by:
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The Licensee agrees to the discussed plan of correction listed on the report.
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Based on record review, the licensee did not comply with the above section. Licensee did not maintain sufficient cash reserves, had an operating loss, did not pay taxes, and filed bankruptcy, which posed a potential health and safety risk to residents in care.

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Request Denied
Type B
07/21/2023
Section Cited
CCR
87555(a)
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87555(a) General Food Service Requirements (a) The total daily diet shall be of the quality and in the quantity necessary to meet the needs of the residents and shall meet the Recommended Dietary Allowances...This requirement is not met as evidenced by:

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Licensee will submit plan by 07/21/2023 how they will ensure the USDA food guidelines are followed to meet the needs of the residents.

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Based on record review, the licensee did not comply with the above section. Licensee’s monthly food expenses reported were below the USDA guidelines, which posed a potential health and safety risk to residents in care.

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Failure to correct the cited deficiency(ies), on or before the Plan of Correction (POC) due date, may result in a civil penalty assessment.
SUPERVISORS NAME: Desaree Perera
LICENSING EVALUATOR NAME: Kasandra Lopez
LICENSING EVALUATOR SIGNATURE:

DATE: 07/12/2023
I acknowledge receipt of this form and understand my appeal rights as explained and received.
FACILITY REPRESENTATIVE SIGNATURE:

DATE: 07/12/2023
LIC9099 (FAS) - (06/04)
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