Nursing home executives settle allegations of mortgage-refinancing scheme

Share this article:

Three men recently agreed to pay over $5.3 million to settle charges that they issued false statements to secure mortgage financing for three Oklahoma nursing homes.

Auditors working for the Department of Housing and Urban Development allege that Philip M. Green, Jerry Max Jiles and Virgil M. Harry Jr. made false statements when applying for Department of Housing and Urban Development mortgage refinancing for three facilities, the Tulsa World reported.

"Mortgage lenders and borrowers must deal fairly and honestly when public money is on the line," Acting Assistant Attorney General for the Department of Justice's Civil Division Stuart F. Delery said in a statement. "The Department of Justice will tirelessly pursue mortgage lenders and borrowers who make false representations to enrich themselves at the public's expense."

HUD loosened restrictions on loans for nursing homes in 2004. Some providers have ended up in trouble, such as Rhode Island nursing home executive Anthony Giordano. He made $4.4 million in “questionable cash disbursements” from his facilities' HUD-insured mortgages, according to the Office of the Inspector General. He pleaded guilty in 2006 and served 2 ½ years in prison.

Share this article:

More in News

CMS needs to get nursing home staffing information directly from payroll systems, Congressional leaders say

CMS needs to get nursing home staffing information ...

Federal regulators should start collecting nursing home staffing information directly from payroll systems as soon as possible, members of the Congressional Seniors Task Force said in a letter to a ...

Male CNA who wears women's clothing can pursue charges that nursing home ...

A Texas certified nursing assistant can continue to pursue charges that his former nursing home employer has made false, defamatory statements about him in the job referral process, a federal court recently ruled.

High-profile consumer advocacy group sues over broken Medicare appeals process

Long-term care providers have been outspoken in their criticism of the Medicare appeals process, which has all but ground to a halt. Now a class-action lawsuit says Medicare beneficiaries also are being harmed by the excessively long delays.