The Justice Department (DOJ) announced today that KBWB Operations LLC, also known as Atrium Health and Senior Living, has pleaded guilty to charges of health care fraud and tax conspiracy. Kevin Breslin, 58, of Hoboken, New Jersey, the company’s former CEO and managing member, also pleaded guilty to the same charges concerning the operation of multiple skilled nursing facilities.
Court documents revealed that the health care fraud scheme involved unlawfully diverting CMS funds intended for resident care at KBWB-Atrium Wisconsin skilled nursing facilities. The funds were misused for personal expenses, violating federal regulations governing nursing facilities. Furthermore, the defendants allegedly prioritized payments to the company’s owners, regardless of the company’s financial situation, causing harm to the residents’ quality of life.
“The operators of these institutions must live up to their obligations and the law,” said Acting Assistant Attorney General Brett A. Shumate. “The Department of Justice will continue to work closely with its law enforcement partners to ensure the safety and dignity of our most vulnerable citizens.”
Additionally, the defendants failed to pay vendors for their services and neglected to remit withheld income and employment taxes to the IRS. They also directed that these tax payments be falsely reported, further compounding the fraudulent activity.
As part of the scheme, employees’ tax deductions for insurance premiums and 401(k) contributions were also not paid, impacting workers and causing financial damage.
