Owner pleads guilty to $4.2 million bilking scheme

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The former owner of more than 50 nursing homes in Texas and several other states pleaded guilty to Medicaid and Medicare fraud to the tune of approximately $4.2 million, according to an announcement from the local U.S. District Attorney.

Rocky R. Lemon, who owned TLC Health Care Inc. and TLC Health Care of Illinois Inc., entered his guilty plea in the U.S. District Court for the Western District of Texas. He admitted to fraudulently diverting Medicare and Medicaid funds for nearly three years, between 1998 and 2001. He used the money to purchase and sell nursing homes and other assets and kept the profits from the transactions in his personal accounts, according to the U.S. Attorney for the Western District of Texas Johnny Sutton.

Lemon, who allowed the state to take over all of his nursing care facilities in Texas in 2001, faces up to 20 years in prison and a $500,000 fine. Atlanta-based Arcapita Inc. acquired TLC Health Care in 2005.
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