On Friday, the Justice Department announced that a health-care firm and its CEO had pled guilty to one count of fraud and one count of tax conspiracy. KBWB Operations LLC and its CEO, Kevin Breslin, of Hoboken, N.J., pleaded guilty to a single count of health care fraud and one count of tax conspiracy in connection with the management of many skilled nursing homes. The case stems from investigations into Breslin’s alleged diversion of Centers for Medicare and Medicaid Services cash intended for facility operation and administration for personal and other purposes.
“Americans rely on skilled nursing facilities to care for themselves, family members, and other loved ones, and the operators of these institutions must live up to their obligations and the law,” Acting Assistant Attorney General Brett Shumate said. Breslin pleaded guilty in U.S. district court in Western Wisconsin on December 17, while KBWB-Atrium, which Breslin co-owned, did the same on Tuesday. KBWB-Atrium, with headquarters in Little Falls, N.J. and Appleton, Wis., ran nursing homes in New Jersey, Wisconsin, and Michigan. On February 1, 2023, a federal grand jury in Wisconsin indicted Breslin and KBWB-Atrium on 12 counts for their use of Medicare and Medicaid monies between 2015 and 2018.
“According to court documents, the defendants’ alleged health care fraud scheme involved unlawfully diverting CMS fund intended for the operation, management, maintenance, and care of the residents of the KBWB-Atrium Wisconsin skilled nursing facilities for other purposes and personal expenses,” says the Justice Department. Chad Yarbrough, assistant director of the FBI’s criminal investigation branch, stated that the alleged scam breached the confidence of vulnerable groups. “Breslin’s actions not only eroded the public trust but endangered the well-being of patients who rely on our health care system,” according to Yarbrough.
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