– Darren Barbee, Fort Worth Star Telegram
A federal grand jury in Fort Worth returned 29 indictments against Gary R. Trebert, Stephen M. Ewing, and Larry Gordon May. Each one was charged with one count of conspiracy to defraud the IRS and Health and Human Services, five counts of mail fraud, seven counts of false statements to government agencies, and seven counts of false statements relating to care matters. The indictment alleges that starting in 1999 to May 2004 the defendants knowingly and intentionally devised a scheme using false statements and false documents to obtain control of 70 nursing homes in the name of sham entities.The false statements were used to conceal fraud from HHS, state licensing and Medicaid agencies, and the IRS. The defendants had control of management and responsibility to nursing home residents for over $200 million in payments to their nursing homes. They diverted substantial sums of money from their nursing home operatrions to their personal accounts. Their scheme was to obtain more than $200 million from Medicare, Medicaid, and private pay patients base. They obtained certifications and licenses to operate nursing homes based on non-disclosure of control in management and responsibility for the nursing home patients. They filed false reports and staff enhancement reports with state and federal authorities to obtain and increase their money derived from the fraudulent control of nursing homes.
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