Court rules that former nursing home executives must pay $12 million for stealing from debt-ridden facilities

Share this article:

Two former nursing home executives were ordered to pay $12 million for misdirecting millions of dollars from two failing Rhode Island nursing homes, a federal judge ruled Thursday.

Chief U.S. District Court Judge Mary Lisi found that former executive Antonio Giordano and his ex-CFO John Montecalvo misused funds from a Department of Housing and Urban Development contract. According to a lawsuit filed by HUD in 2009, Giordano and Montecalvo diverted $4.2 million from Mount Saint Francis Health Center, located in Woonsocket, RI, and $1.8 million from Coventry Health Centers while conditions in the facilities declined steeply, the Providence Journal reported.

Lisi, who doubled the damages the defendants must pay, said she wanted to deter individuals who might be tempted to steal from publicly funded projects. The IRS also is attempting to reclaim millions from Giordano.

 

Share this article:

More in News

Long-term care continues to lead in deal volume and value: PwC report

Long-term care continues to lead in deal volume ...

Long-term care bucked healthcare industry trends with strong merger and acquisition activity in the second quarter of 2014, according to newly released data from professional services firm PricewaterhouseCoopers.

Empowering nurse practitioners could reduce hospitalizations from SNFs, study finds

Granting more authority to nurse practitioners is associated with reduced hospitalization of skilled nursing facility residents, according to recently published findings.

Pioneer ACO drops out of program, despite reductions in skilled nursing utilization

A California healthcare system has become the latest dropout from the Pioneer Accountable Care Organization program, despite reducing skilled nursing facility utilization and improving its readmission rates. Sharp HealthCare announced its decision in a quarterly financial statement released Tuesday.