The CEO and operating company behind a multi-state nursing home chain, Atrium Health and Senior Living, have pleaded guilty to a fraud and tax conspiracy that left staff unpaid and residents without necessary care.
The U.S. Department of Justice announced that KBWB Operations, operating as Atrium Health, entered a guilty plea on Jan. 21 in the U.S. District Court for the Western District of Wisconsin.
Atrium’s CEO, Breslin, had previously pleaded guilty on Dec. 17, 2024. Both parties admitted to one count of healthcare fraud and one count of tax conspiracy.
The guilty pleas stem from a complex four-year scheme that began in early 2023, during which Medicare and Medicaid funds were used to pay investors instead of covering operational expenses.
This left 23 Wisconsin nursing facilities underfunded, depriving residents of critical supplies and staff of their wages.
According to prosecutors, the company prioritized distributions to its owners over its financial obligations.
Vendors went unpaid for extended periods, and funds deducted from employees’ paychecks for insurance and retirement contributions were misappropriated.
Additionally, the CEO allegedly directed the withholding of income and employment tax payments to the IRS, forcing affected employees to file incorrect tax returns.
The Justice Department emphasized that these actions violated federal regulations governing skilled nursing facilities, undermining residents’ quality of life. Acting Assistant Attorney General Brett A.
Shumate stated, “Americans rely on skilled nursing facilities for the care of loved ones, and operators of these institutions must adhere to their legal obligations. We will continue working to ensure the safety and dignity of our most vulnerable citizens.”
Atrium previously operated facilities in Wisconsin, Michigan, and New Jersey. In 2018, 33 Atrium nursing homes went into receivership, and two facilities were raided by the FBI in 2019.
Despite this history, federal records still list KBWB and Breslin as owners of at least two New Jersey nursing homes, though their fraud convictions could lead to exclusion from Medicare and Medicaid programs.
Both defendants are scheduled for sentencing on May 7. Breslin faces up to 10 years in prison for healthcare fraud and five years for tax conspiracy, along with potential restitution and monetary penalties.
Leave a Comment