A San Diego medical care provider for low-income families has sued its El Cajon landlord for allegedly overcharging on rent, according to media reports.
Borrego Community Health Foundation (BCHF) is alleging in federal court that Daryl Priest’s companies inflated the rent on property that the charity used to the tune of $11 million.
Priest, who received the Community Leadership Award during the State of the City last year, owns DP Homes, serves as the board president of the Downtown El Cajon Business Partners, is the president and title sponsor of the Mother Goose Parade Association, and a contributor to the East County Transitional Living Center.
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“BCHF commenced litigation against the Daryl Priest entities to ask the court to intervene and help BCHF resolve issues pertaining to leases between BCHF and Priest-related entities,” said Dan Kramer, spokesperson for Borrego Health.
Priest also owns the medical billing company that manages Borrego Health’s finances and has built clinics that were leased to Borrego Health.
“BCHF's board directed the undertaking of a thorough investigation of the various leases and contracts with Daryl Priest-related entities as soon as there was an indication that there was cause to be concerned,” Kramer told the Southern California Record. “As part of the review, BCHF had a fair market analysis conducted and completed an internal review of lease terms. Following the review, BCHF stopped payment on the leases, entered into discussions with the landlords to renegotiate the rental terms, and ultimately sought court intervention when the parties could not reach an agreement.”
The Desert Sun reported that the Department of Justice’s Division of Medi-Cal Fraud and Elder Abuse is investigating Borrego Health and state and federal agents raided the BCHF office last year.
“Borrego Health remains committed to its goal of improving the health of under-served populations in our service areas by delivering high quality and compassionate care,” Kramer said. “Borrego Health intends to continue its full cooperation with all government inquiries.”
BCHF named the state Department of Health Care Services, which suspended the organization’s Medi-Cal payments after its office was raided.
Priest did not immediately respond to requests for comment.