A nursing home corporation and its former chief executive officer have entered guilty pleas to a number of startling offenses, including embezzlement of money intended for patients in need.#Madison, Wisconsin, #News, #Crime
MADISON, WIA A startling plot involving a Wisconsin nursing home operator and its former CEO has come to light, exposing the misappropriation of cash intended for patient care for private benefit. Together with its former CEO Kevin Breslin, KBWB Operations LLC, doing business as Atrium Health and Senior Living, entered a guilty plea to charges of tax conspiracy and health care fraud. Federal officials described how this fraudulent behavior, which occurred across several states and left a trail of financial and moral harm, directly affected staff and vulnerable patients.
Guilty Pleas in Federal Court
The U.S. Department of Justice said Friday that Kevin Breslin, 58, and KBWB Operations LLC had admitted guilt to one count of tax conspiracy and one count of health care fraud. The Western District of Wisconsin U.S. District Court heard the case.
Breslin, one of KBWB-Atrium’s six proprietors, was the company’s previous leader. KBWB-Atrium was situated in New Jersey and also maintained a Midwest corporate office in Wisconsin. The corporation, which was partially financed by Medicare and Medicaid payments, ran nursing homes in New Jersey, Wisconsin, and Michigan.
Diverting Funds Intended for Patient Care
According to court documents, Breslin and KBWB-Atrium embezzled federal monies intended for nursing home residents’ care. Regardless of the state of the business, the defendants allocated funds to personal costs and payments to the owners of KBWB-Atrium rather than putting the needs of the patients first. As a result, their facilities consistently failed to fulfill federal care standards.
According to Acting Assistant Attorney General Brett A. Shumate, Americans depend on skilled nursing institutions to care for themselves, their loved ones, and family members.
These institutions’ operators are required to abide by the law and their responsibilities.
Unpaid Vendors and Employee Contributions
Patient care funds were not the end of the deception. For extended periods of time, vendors were not paid, and in several instances, they were never compensated for their work.
Money taken out of employees’ paychecks for 401(k) contributions and insurance premiums was not sent to third-party administrators as required, which furthered the malfeasance.
To make matters worse, Breslin ordered that Wisconsin employees’ income and employment taxes withheld from their paychecks not be sent to the IRS. Workers were forced to disclose these taxes to the federal government in a dishonest manner.
Justice Department s Statement
According to U.S. Attorney Timothy M. O. Shea for the Western District of Wisconsin, healthcare fraud impacts all Americans.
These people took advantage of our health care coverage programs and hurt the elderly for their own benefit.
On May 7, the defendants will be sentenced. Breslin could spend five more years in prison for tax conspiracy and up to ten years for health care fraud. Other options include supervised release, restitution, and monetary penalties.
FBI and IRS Pledge Continued Oversight
The IRS and FBI reaffirmed their dedication to investigating and prosecuting crimes such as this one.
Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division stated that Breslin’s conduct not only damaged public confidence but also jeopardized the health of people who depend on our healthcare system.
The message was reaffirmed by IRS-CI Acting Special Agent Ramsey E. Covington: Healthcare fraud directly targets the financial systems that support both public and private confidence. We are still committed to looking into and bringing charges against people and companies that try to take advantage of these institutions for their own benefit.
Associated Topics: Criminal Activity | Michigan | New Jersey | Wisconsin
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