Resident's lawsuit says Aldersgate mishandled money
Retiree says he wants 'bulk of his life savings' returned as retirement community battles financial challenges
The following article appeared in the March 8, 2024, edition of The Charlotte Ledger, an e-newsletter with smart and original local news for Charlotte. We offer free and paid subscription plans. More info here.
Lawyer who moved into east Charlotte retirement community 18 months ago says he’s entitled to get triple his $350,000 entrance fee back; Alleges ‘criminal enterprise’ by Aldersgate leaders
Aldersgate on Shamrock Drive in east Charlotte has about 570 residents, according to documents filed with the state. Its 231-acre campus includes independent living residences, assisted living units, memory support units and skilled nursing beds.
by Cristina Bolling
An Aldersgate resident filed a lawsuit in federal court Thursday, alleging that the retirement community’s administrators and its board ran an “unlawful racketeering enterprise” in their dealings with seniors’ entrance fees.
The suit, filed by attorney Kenneth McElwee in U.S. District Court in Charlotte, claims that Aldersgate leaders ran a “criminal enterprise under the guise of operating a retirement community” and demands that Aldersgate return the $350,895 entrance fee McElwee paid before moving into the community, plus his moving expenses, attorney fees, interest and court costs.
McElwee is alleging violations under two statutes that the suit says would entitle him to a judgment of triple his damages plus attorneys fees, which would be more than $1M.
It also seeks $350,000 from each of the 42 defendants named in the suit for punitive damages.
McElwee is representing himself in the lawsuit.
The lawsuit gives a not-seen-before window into one resident’s allegations of what the east Charlotte retirement community’s representatives told prospective residents about how refundable portions of their deposits would be used. It also accuses former and current Aldersgate leaders of creating a parent company with the purpose of moving money out of the retirement community and into an organization that is unregulated by the state.
Many Aldersgate residents are concerned about the organization’s finances, and records show that some of the residents’ meetings have been contentious, but many don’t want to talk publicly. McElwee’s suit is rare in that it presents public and outspoken criticism of Aldersgate’s leadership from someone who lives there.
McElwee, who has been a resident at Aldersgate since September 2022, told The Ledger that he has rented an apartment in the Charlotte area and plans to move his belongings out of Aldersgate on Monday.