September 29, 2023

🔒 Firm that ran 23 nursing properties in Wisconsin, CEO charged with fraud

A New Jersey-based firm that operated 23 nursing properties all through Wisconsin, and its former chief government officer are dealing with federal costs of well being care fraud, cash laundering, wire fraud, and extra following an alleged scheme that concerned defrauding Medicare and Medicaid.

An indictment filed Feb. 2 within the U.S. District Courtroom for the Western District of Wisconsin costs Kevin Breslin of Hoboken, New Jersey and Park Ridge, New Jersey-based KBWB Operations, LLC with 10 various counts of fraud. KBWB did enterprise as Atrium Well being and Senior Dwelling.

Atrium operated 24 expert nursing and 9 assisted residing services in Wisconsin and Michigan, together with services in Appleton, Black River Falls, Bloomer, Chetek, Chilton, Ellsworth, Kewaunee, Lancaster, Little Chute, Marshfield, Mineral Level, Neenah, New Holstein, Oconto Falls, Plymouth, Shawano, Stevens Level, Two Rivers, Weston, Williams Bay, and Wisconsin Rapids.

Breslin was the managing member and chief government officer of Atrium from June 2014 till August 2018 when he was fired. He obtained a yearly wage of roughly $1 million, in addition to weekly assured funds of between $30,000 and $40,000.

The indictment alleges that from January 2015 by September 2018, Atrium billed Medicare for over $189,000,000 and obtained over $49,000,000. The corporate additionally allegedly billed Medicaid for over $218,000,000 and obtained over $93,000,000.

The indictment alleges that when Atrium obtained cash from Medicare and Medicaid, the corporate licensed that it might observe all required high quality of care requirements, however it didn’t achieve this. Atrium did not function its services with satisfactory staffing, provides and providers.

As a part of a scheme, Breslin and Atrium allegedly diverted funds from the Wisconsin services by assured funds to Atrium homeowners, assured month-to-month return-on-investment funds to buyers that have been financing the development of expert nursing services in New Jersey, and building prices for the New Jersey services.

The indictment additionally alleges that the diversion of funds brought about insufficient care of residents, together with a scarcity of fresh diapers, insufficient wound care provides, insufficient cleansing provides, and an absence of sturdy medical gear and respiratory provides.

An absence of funds additionally led to distributors not being paid, which brought about quite a few providers to be reduce off, together with bodily remedy for residents, hearth alarm monitoring providers, cellphone and web providers stopping workers from acquiring prescription orders and accessing digital medical information programs, and vital repairs and upkeep of the bodily plant services.

As well as, the indictment alleges that Breslin and Atrium withheld insurance coverage premiums from staff’ paychecks however failed to supply that cash to a third-party administrator to be used in paying well being claims, inflicting cost of staff’ well being claims to be stopped. The indictment additional alleges that Breslin withheld 401(ok) retirement financial savings account contributions from staff’ paychecks.

Breslin and Atrium additionally allegedly evaded cost to the Wisconsin Division of Income and the Inner Income Service of state and federal revenue taxes and employment taxes withheld from staff’ paychecks.

If convicted, Breslin faces penalties of 5 years in federal jail on the conspiracy to commit tax fraud cost, and 20 years on every well being care fraud, wire fraud, mail fraud, and conspiracy to commit cash laundering cost. The conspiracy to commit tax fraud cost and every of the well being care, wire and mail fraud costs carry a $250,000 tremendous; the cash laundering cost carries a $500,000 tremendous.