In the first case of a nursing home owner pleading guilty to federal healthcare fraud for failing to provide care to residents, a Louisiana man faces up to 37 months in prison after admitting to misusing $2.4 million in federal payments while residents at his nursing homes suffered. Melville Borne Jr., 59, of Mandeville, La., also pleaded guilty to pension fraud. According to the 53-count indictment, Borne illegally used funds from three Louisiana nursing homes operated by his company Evangeline Health Care, Covington, La., to pay for his $250,000-a-year salary and his $3.9 million estate in Folsom, La. Nursing home funds also were wrongly used to cover mortgage payments, development costs and other expenses at a separate company owned by Borne, Dynastar Development. Meanwhile, the nursing homes -- in Destrehan, Houma and Natchitoches -- were inadequately staffed and provided substandard services, the indictment said. Borne is scheduled to be sentenced Sept 15. In a news release, HHS' inspector general's office said, "This should send a clear message to nursing home owners and operators that they will be held accountable for management decisions that have an adverse impact on Medicare and Medicaid beneficiaries." -- by Julie Piotrowski
La. nursing home owner pleads guilty to fraud
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