Senior living CEO indicted for fraud
A Wisconsin senior living facility executive has been indicted on federal fraud charges for diverting funds from residents and negatively affecting their quality of life, according to a report by WBAY in Green Bay.
A grand jury in the Western District of Wisconsin returned a 12-count indictment against Kevin Breslin, 56, managing member and CEO of KBWB Operations, LLC, which does business as Atrium Health and Senior Living. Atrium operates 24 locations in Wisconsin and Michigan, including Atrium Post-Acute Care of Mineral Point, Wisconsin, and facilities in New Jersey. Breslin was a 20% owner of Atrium.
The indictment alleges defendants diverted funds from the skilled nursing facilities (SNFs) to guaranteed payments to Atrium owners totaling $37 million; guaranteed monthly return-on-investment payments to investors who had invested over $20 million to finance new SNFs in New Jersey; and construction costs on three new facilities in New Jersey.
The indictment also says funds were diverted to personal expenses including payments to the IRS for unpaid taxes, loan repayments, and mortgage debts.
The indictment reads as follows: “The defendants certified that they would operate their Wisconsin SNFs with adequate staffing, supplies, environment, and ancillary services, which they did not do. The defendants certified that they would operate their Wisconsin SNFs in a manner that would enhance the resident’s quality of life by providing them services and activities to attain and maintain the highest practicable physical, mental, and psychosocial well-being of each resident in accordance with a written plan of care, which they did not do.
“Instead of using their Medicare and Medicaid reimbursement funds to take care of the residents in their Wisconsin SNFs, and ensure that the Wisconsin residents attained or maintained the highest practicable physical, mental, and psychosocial well-being, as required by Title 42, the defendants diverted these funds for other purposes.”