MADISON, WI – Kevin Breslin, 56, of Hoboken, New Jersey, and his company, KBWB Operations, LLC, doing business as Atrium Health and Senior Living (Atrium), are facing federal charges in a sweeping healthcare fraud indictment unsealed yesterday. The feds allege a deliberate scheme to bilk Medicare and Medicaid out of hundreds of millions of dollars while providing substandard care at facilities across Wisconsin and Michigan.
The indictment, returned by a grand jury in the Western District of Wisconsin, details a conspiracy spanning from January 2015 to September 2018. Breslin, the Chief Executive Officer of Atrium, and the company itself are charged with health care fraud, six counts of wire fraud, three counts of mail fraud, conspiracy to commit tax fraud, and conspiracy to commit money laundering. If convicted on all counts, Breslin could face decades behind bars.
Atrium operated a staggering network of 24 skilled nursing facilities and nine assisted living facilities in Wisconsin and Michigan. The facilities named in the indictment include Atrium Post Acute Care of Appleton, Black River Falls, Bloomer, Chetek, Chilton, Ellsworth, Kewaunee, Lancaster, Little Chute, Marshfield, Menominee (MI), Mineral Point, Neenah, New Holstein, Oconto Falls, Plymouth, Shawano (Birch Hill, Evergreen, Maple Lane), Stevens Point, Two Rivers, Weston, Williams Bay, and Wisconsin Rapids. Each facility represents a potential breeding ground for neglect and financial malfeasance, according to the government’s claims.
The sheer scale of the alleged fraud is breathtaking. The indictment claims Atrium billed Medicare for over $189,000,000, receiving over $49,000,000, and billed Medicaid for over $218,000,000, collecting over $93,000,000. Crucially, the government alleges that Atrium certified they would adhere to quality of care standards and maintain adequate staffing, supplies, and services – promises they allegedly failed to keep. Sources close to the investigation suggest patient care suffered dramatically as funds were siphoned off.
Prosecutors allege the scheme involved diverting funds received from Medicare and Medicaid through guaranteed payments to Atrium owners, guaranteed monthly return-on-investment payments to investors financing construction of facilities in New Jersey, and covering construction costs for those New Jersey facilities. Essentially, the indictment paints a picture of a company prioritizing profits over patient well-being, using federal healthcare dollars to enrich its owners and expand its reach. The diverted funds, the indictment states, left Wisconsin and Michigan facilities chronically understaffed and lacking essential resources.
This case is far from over. Federal investigators are now meticulously tracing the flow of money, interviewing former employees, and building a case that promises to expose the dark underbelly of the for-profit nursing home industry. Grimy Times will continue to follow this developing story and bring you the unvarnished truth about those who prey on the most vulnerable among us. The next court date has not yet been set.
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Key Facts
- State: Wisconsin
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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