A New Jersey man who headed a corporation that owned and operated Atrium skilled nursing facilities in Shawano, Oconto Falls and other Wisconsin cities, pleaded guilty Dec. 17 in federal court to defrauding Medicare and Medicaid out of at least $6.2 million.
According to court documents, Kevin Breslin, 58, of Hoboken, New Jersey, supervised KBWB Operations LLC, doing business as Atrium Health and Senior Living, overseeing all financial, staffing and clinical operations at Atrium’s three facilities in Shawano and one in Oconto Falls. In total, KBWB had 24 skilled nursing and nine assisted living facilities in Wisconsin and Michigan with more than 1,900 licensed beds and 1,700 employees.
The facilities in Shawano are Atrium Post Acute Care at Birch Hill, at Evergreen and at Maple Lane. Atrium Post Acute Care of Oconto Falls was also operated by KWBW.
Between 2014, when Breslin started Atrium, and 2018, the Atrium’s Wisconsin SNFs billed Medicare more than $189 million and received $49 million. It also billed Medicaid more than $218 million and received in excess of $93 million.
Breslin was paid $1 million annually, and with his five other co-owners, had guaranteed weekly payments of $30,000-$40,000. The guaranteed owner compensation payments totaled more than $37 million.
Meanwhile, employee paychecks bounced, food vendors weren’t paid and quit, and money from residents’ trust accounts wasn’t returned to them or family members upon discharge or death.
That’s because Breslin was diverting Medicare and Medicaid payments for his personal use and for the personal use of KBWB’s five other co-owners.
That diversion of funds impacted patient care as facilities ran low on food, diapers and medical equipment. Telephone and internet service was curtailed when vendors weren’t paid.
Soiled bed linen were not changed, patients were not bathed as scheduled, and staff didn’t respond to patient calls for assistance.
Breslin authorized diverting withholding funds from employee paychecks but failed to pay the withheld taxes to the IRS despite issuing W-2 forms to employees falsely claiming that the funds had been to the IRS.
That caused employees to unknowingly file tax returns listing the supposed withheld funds to the IRS.
Breslin, who owned 20% of KBWB, was fired in August 2018. He was charged in a multi-count indictment with wire fraud, mail fraud, tax fraud and health care fraud.
On Dec. 17, he pleaded guilty to health care and tax fraud and faces maximum penalties of 15 years in prison, fines equal to twice the amount of gross loss or gain resulting from his offense and three years of supervised release.
The parties haven’t agreed upon the amount of restitution Breslin would owe but Judge William Conley gave them until the May 7 sentencing to come to an agreement or he would set the amount himself.
No identified victim objected to the plea agreement’s terms, said Karla-Dee Clark, U.S. Department of Justice, Consumer Protection. Victims can file an impact statement with the court before sentencing.
Conley continued Breslin’s release on standard conditions.
After court, Clark declined to comment on the case.
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