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

CDC issues new guidelines on pneumococcal vaccine, says LTC flu vaccination rates remain low

CDC issues new guidelines on pneumococcal vaccine, says ...

Long-term care workers continued to have low rates of flu vaccination last season, despite there being 92% vaccination coverage overall among physicians and nurses, the Centers for Disease Control and ...

AL operators accused of withholding $2M in unpaid overtime, minimum wages ...

Four California assisted living operators are facing eight felony charges related to wage theft, tax and insurance violations, according to local reports.

Three states to examine risk, reform in Medicaid project

Alabama, Washington and Nevada are participating in a yearlong Medicaid project that could help share risk between states and the federal government, the National Governors Association said this week.