Nursing Home Company Alleges Fraud in Lawsuit

A San Juan Capistrano nursing home firm has filed suit accusing a former executive and his wife of defrauding the company and using the proceeds to build a Laguna Beach mansion.

The lawsuit, filed Wednesday in Orange County Superior Court by Covenant Care Inc., seeks damages of $2 million plus punitive damages against Stephen Edward Samuelian and his wife, Susan Deeann Samuelian.

The company said that Stephen Samuelian, who had been an officer of the company and was later in charge of overseeing the development of two new nursing homes, fraudulently diverted funds from the construction to his personal accounts.

Neither the Samuelians nor company officials could be reached for comment.