Embezzled Money Went for Car Repairs, Household Expenses

The former executive director of the Altenheim Skilled Nursing Facility is accused of stealing $500,000 from his employer, but apparently did not use it for a lavish lifestyle.

Detective Wayne Feuerstein, who handled the investigation for the Strongsville Police Department, said Gregory McDanels made personal purchases on company credit cards and paid off his own bills with corporate checks.

"He was using the credit card to make repairs on his car, buying filters for he furnace, working on his son's car, things like that," Feuerstein said.

But the thefts allegedly went on for years -- from 2001 to 2008, according to Ryan Miday, spokesman for Cuyahoga County Prosecutor Bill Mason.

"It went on for such a long time, it all added up," Feuerstien said.

McDanels, 49, of Bay Village, has been charged with theft, a third-degree felony. He faces a maximum of five years in prison.

An arraignment in Cuyahoga County Common Pleas Court is scheduled for March 1.

Miday said McDanels is accused of giving himself unauthorized bonuses, altering records and issuing unauthorized reimbursement checks.

The bulk of the offenses stem from using the company's credit card for personal expenses like car repairs and clothing, and forging checks to pay off personal debts, like credit card bills, Miday said.

He is also charge with stealing $4,100 from a resident fund, in which residents deposit money for themselves for expenses.

McDanels was charged by way of an information, which typically means he is cooperating with authorities.

He did not start off cooperating, though. Feuerstein said McDanels showed up for an initial interview with police, but within minutes, halted the conversation and said he wanted a lawyer.

Paul Psota, the current CEO at Altenheim, said last week the alleged thefts were discovered after McDanels left his job in February 2009. 

"We discovered some financial issues we immediately forwarded to the Strongsville police," Psota said.

Feuerstein said the seven-month investigation netted "good documented evidence" of theft.

"They (Altenheim officials) came to us when they found some problems," he said. "As we continued the investigation, more issues came up."

Feuerstein said the Altenheim cooperated fully with investigators.

Psota said the company's finances "are as strong as ever" and that the actions of one person should not reflect negatively on the dedication of the other 260 employees.

The Altenheim operates a skilled nursing facility with Alzheimer's unit and the adjacent Shurmer Place, an assisted living community. Owner of the business is West Side Deutcher Frauen Verein.