A former owner of a Tennessee assisted living and memory care community has been indicted on eight felony counts related to fraud and financial misconduct for misusing almost $11 million of company funds, and the loss of funds has pushed the community and its parent company into bankruptcy. 

Andrew Charles Sneed was arrested May 23 and indicted June 2 on charges of computer offenses, criminal simulation, forgery, money laundering and theft of property. Sneed co-owned, with Tracy Sneed and John Holden Jr., Remember Me Senior Care, which opened in 2018. He also was a member of Lighthouse Land Holdings.

Remember Me, an assisted living and memory care community in Cleveland, TN, is licensed for 70 residents. The company employs 81 people. 

Both companies filed for bankruptcy in February after Tracy Sneed reportedly uncovered that Andrew Sneed had “intentionally engaged in a course of conduct of misusing company funds, credit and other assets,” according to the bankruptcy filing.

According to the bankruptcy filing, Andrew Sneed made more than $700,000 in unauthorized charges on the company credit card. He also allegedly issued himself $3 million in loans to pay for his travel business, Aceco Travel. In total, Andrew Sneed allegedly stole $10.9 million from the two companies without the knowledge or approval of Tracy Sneed or Holden.

The filing stated that Tracy Sneed became aware of unauthorized transactions by Andrew Sneed when a check to Solinity Services was returned for insufficient funds. Upon further investigation, according to the document, “substantial unauthorized transactions” involving company funds were discovered. 

Tracy Sneed stated in the filing that the companies’ financial reports were “incomplete and lacked transparency” due to Andrew Sneed’s refusal to give Solinity access to key accounts. Tax returns submitted to Andrew Johnson Bank also showed discrepancies with reports provided by Andrew Sneed differing from those submitted by Tracy Sneed, raising questions about the accuracy of the financial statements, according to the filing.

“Despite repeated requests for financial disclosures from Andrew, I was denied access to critical records and was unable to fully ascertain the financial health of the companies,” Tracy Sneed stated in the bankruptcy filing.

Given the alleged fraudulent activity and resolving financial instability reportedly caused by Andrew Sneed’s actions, the company filed for Chapter 11 bankruptcy protection “in good faith, to allow the companies to organize and address their valid financial obligations.” 

Sneed is scheduled to enter a plea in Bradley County Criminal Court on July 28. Remember Me Senior Care had not responded to a request for comment from McKnight’s Senior Living  as of the production deadline.