Former nursing home executive convicted of embezzlement agrees to $1.2 million settlement in bankruptcy court
A nursing home executive convicted of embezzling millions of dollars from publicly financed facilities has agreed to pay $1.2 million to the federal government to settle claims, through a deal worked out in U.S. Bankruptcy Court.
Antonio L. Giordano pleaded guilty in 2006 to siphoning money from two failing nursing homes, which ultimately defaulted on mortgages insured by the Department of Housing and Urban Development. He served more than two years in prison, and then faced a lawsuit filed by HUD in 2009. He also faced charges that he owed unpaid payroll taxes.
In 2011, Giordano filed for bankruptcy, and said he could not pay the $8 million owed to the Internal Revenue Service. Although the government argued that Giordano's bankruptcy filing was a ploy to get around paying the money he owes, the agreement filed last week is supported by HUD and the Internal Revenue Service, according to local reports. It awaits approval by a judge.