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

'Minor' issues at the nursing home can cause disastrous care transitions, expert warns

'Minor' issues at the nursing home can cause ...

What may appear to be minor administrative problems in a nursing home - a fax machine locked away at night or no one designated to copy paperwork - can cause ...

Long-term care facilities approach 80% worker flu vaccination rate after handing power ...

Fourteen long-term care facilities in Pennsylvania dramatically increased their staff flu vaccination rate by having a regional pharmacy take over the process, according to a report issued Thursday by the Agency for Healthcare Quality and Research (AHQR).

RACs were 'most improved' healthcare auditors for getting back money in 2013, ...

Medicare Recovery Audit Contractors dramatically stepped up their overpayment recoveries last year, returning nearly $487 million more to the government than they did in 2012, according to a new report from a federal watchdog agency.