‘Disabled’ Life Care Centers owner resists medical, competency tests, son applies for emergency conservatorship

by James M. Berklan

Amid fears his third wife is planning to take him out of the country, the billionaire owner of Life Care Centers of America is now the subject of an emergency conservator request from a son who wants some control over his “disabled” 91-year-old father.

The request in a Tennessee court comes less than a week after Aubrey Preston first asked a judge to intervene on behalf of his father, Forrest Preston, whom he claims has been increasingly isolated and abused by his wife and her siblings since their “secret” marriage six years ago.

It followed the discovery that Forrest’s wife, Kim Phuong Nguyen Preston, had entered company headquarters in Cleveland, TN, late at night for no apparent business purpose less than 48 hours after the initial conservatorship request was filed Oct. 29.

Kim also asked Forrest’s personal assistant at the company to help renew his passport and help get her son a passport.

The emergency appeal, which was filed Monday, included sworn affidavits from Life Care’s president and its CFO, who each testified that Forrest has been missing from company work for weeks or months at a time and is “mentally disabled” and unable to make important decisions.

The result has put Forrest’s health, and that of the company, at great risk, they contend in Monday’s Bradley County Chancery Court filing.

Forrest Preston founded Life Care in 1970 and remains its CEO, board chairman and sole owner. His net worth was estimated by Forbes at $1.2 billion last year.

Life Care consists of more than 200 skilled nursing facilities and assisted living communities in 28 states and has more than 30,000 employees.

Pivotal hearing

A hearing has been set for Nov. 12, at which time Aubrey Preston hopes to be named his father’s conservator, or financial overseer, for up to 60 days. That would bridge the time until a mid-January hearing, which has been set to determine whether more permanent conservatorship terms should be put in place.

After last week’s court filing, a judge assigned a legal guardian to help arrange medical testing for Forrest. Through a long-time friend and business associate, however, Forrest refused to submit to the tests, this week’s filing notes.

When a member of the local media reached him by phone Tuesday, Forrest reportedly vowed he was “here to stay.” He also called his wife “a great class lady” and said he would not “beat up” on Aubrey for filing for conservatorship. 

“We’ll work it out,” he added before cutting off further inquiries, according to the Chattanooga Times Free Press.

Janice Seay, the personal assistant to Forrest Preston, said in her affidavit that Kim asked her to help with his passport renewal after Kim said there was interest in returning to her native Vietnam, possibly to purchase real estate. 

Aubrey Preston has accused Kim Preston, along with her brother and sister who live with the couple in Tennessee, of improperly influencing his father to transfer millions of dollars in cash and US real estate to them.

“Forrest is mentally and physically disabled. Without an emergency conservator in place, there will be substantial harm to his health, safety, and welfare as he is vulnerable, including to Kim [and her sister and brother’s] schemes,” wrote attorney Gary R. Patrick in Monday’s filing.

Life Care Centers President Todd Fletcher, who is also a nephew of Forrest Preston, and CFO Steve Ziegler, said via affidavit that Forrest “no longer comprehends even some of the more basic aspects of Life Care and its affiliates’ business operations.” They also described “confusion about routine matters in his daily life.”

“I do not believe that Forrest has the capacity to understand and execute legal documents on behalf of Life Care and its affiliates,” each testified.

Since Kim allegedly has Forrest under her control, each also said they feared that she would “retaliate” against them and other key employees leading to a loss of “essential leadership and crippling operations.”

“Kim’s disruptions of the business of Life Care and its affiliates is devastating to employee morale and operations,” they added.

Also included in the emergency filing was an affidavit from a neighbor of one of Forrest and Kim’s properties, who said it has uncharacteristically gone into disrepair from neglect and has been frequented by vagrants. Upon talking with Forrest about these conditions, the neighbor said he did not appear to understand the conversation — “he simply was not there.”

Attempts to reach Kim and Forrest Preston Wednesday were unsuccessful.

In his emergency conservator request, Aubrey Preston has asked for “limited powers to protect his father’s health, safety, and welfare in the interim.” That would include assuming his father’s decision-making powers as head of the company, in consultation with LCCA President Fletcher and CFO Ziegler. 

He also would acquire control over his father’s passport and, in consultation with the court-appointed legal guardian, would hold sway over any desired expenditures above $25,000. 

Aubrey and his agents also would be able to investigate Forrest’s assets and any transfers made from him or LCCA to Forrest, his wife or her relatives, or anyone else who has received more than $50,000 in value, during the last two calendar years.

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‘Disabled’ Life Care Centers owner resists medical, competency tests, son applies for emergency conservatorship