The former owner of several Chicago-area nursing homes was indicted last week on charges of skimming $1.1 million in federal funds.
Cahill Rosewood CEO Mark Yampol of St. Louis is accused of using mortgages insured by the U.S. Department of Housing and Urban Development to pay the expenses of a non-HUD-insured nursing home, according to an indictment filed in the U.S. District Court Northern District of Illinois Eastern Division. Yampol received HUD-insured loans for all but one of his 14 nursing homes in Illinois and Missouri and stopped making payments in 2015 until the loans defaulted.
From May to August 2015, Yampol diverted $1.1 million in funds from the HUD-insured facilities to the one non-HUD-insured facility in rural Galesburg, prosecutors said. He faces up to five years in prison if convicted, according to the Department of Justice.
In 2019, the New York Times revealed that the owners of the Rosewood Care Centers had defaulted on $146 million in HUD-backed mortgages, resulting in a record loss for the government’s Section 232 lending program for nursing homes and other congregate care facilities. HUD took control of the facilities temporarily until New York City-based Greystone assumed control earlier this year.
This article appeared in the McKnight’s Business Daily, a joint effort of McKnight’s Senior Living and McKnight’s Long-Term Care News.