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June 12, 2006
Nursing home owner to plead guilty to misusing funds
Antonio L. Giordano and an associate have agreed to plead guilty to a federal criminal charge of misusing money from three Rhode Island nursing homes.
The charge, a felony, alleges that Giordano, who owned the nursing homes, and John Montecalvo, who held supervisory roles, hired a company headed by Giordano’s daughters to give parties for employees even as the nursing homes were in the red and defaulting on their federally backed mortgages.
The federal government alleges that the expenditure of $780,539 over six years was “not reasonable and necessary for the operation of the nursing homes,” as required by the mortgage terms.
-- Journal medical writer Felice J. Freyer
Under their plea agreements, Giordano and Montecalvo agreed to pay back the $780,539 to representatives of the now-defunct Hillside Health Center in Providence, the Coventry Health Center, which has changed hands, and Mount St. Francis Health Center, in Woonsocket, which Giordiano still owns but is negotiating with a buyer.
Over the past year, however, federal audits of each of the three nursing homes have found several million in questionable payments from the nursing homes to various companies associated with Giordano.
According to the information filed in court, the mortgages were insured by the U.S. Department of Housing and Urban Development, which led the criminal investigation.
In exchange for guilty pleas from both men, the U.S. Attorney’s Office said it will recommend a prison term “at the lowest point of sentences,” not including probation.
-- Journal medical writer Felice J. Freyer
Posted by Steve Peoples
at 4:30 PM | Permalink
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