Illinois Nursing Home Owner May Have Diverted Over $1 Million Intended For Nursing Homes
The Cahill Group of Chicago, an operating company working in the financial industry returned to the nursing home business in 2014 when owner and founder Mark Yampol acquired St. Louis-based Rosewood nursing homes and skilled-care centers for $250 million. Now operating as Cahill Rosewood, the group oversees 14 nursing homes in cities located throughout Illinois (and Missouri), including homes in Joliet, St. Charles, and Northbrook.
Rosewood facilities are repeatedly named on the state’s list of nursing home violators. In 2019, Rosewood homes called out for quality and care violations included:
- Rosewood Care Center of Moline
- Rosewood Care Center of St. Charles
- Rosewood Care Center of Alton
- Rosewood Care Center of Elgin
- Rosewood Care Center Galesburg
- Rosewood Care Center Inverness
- Rosewood Care Center Northbrook
- Rosewood Care Center of Peoria
Yampol was recently charged with one count of equity skimming in U.S. District Court. He is accused of using mortgages insured by the U.S. Department of Housing and Urban Development (HUD) to pay expenses of a non-HUD-insured nursing home.
According to the indictment:
- The U.S. Department of Housing and Urban Development insured the mortgage loans made by private lending institutions to all but one of Yampol’s nursing homes.
- By March 1, 2015, the HUD-insured facilities had not made timely mortgage payments and were in default of their loans.
- From May 2015 to August 2015, Yampol diverted approximately $1.1 million in funds derived from the HUD-insured facilities, which remained in default on their loans, to pay the mortgage and operating expenses of the non-HUD-insured facility, the indictment states.
- Cahill Rosewood defaulted on the mortgages in 2018, at the stake of $146 million, making the default the biggest collapse of a loan-guarantee program run by HUD.
Rae Oliver Davis, Inspector General of the U.S. Department of Housing and Urban Development, later made this statement.
“We would like to acknowledge our partners at the U. S. Attorney’s Office, who have worked tirelessly to bring this case forward. The alleged diversion of funds is not only significant in its own right but played a significant role in one of the largest insured claims involving HUD’s Section 232 mortgage insurance program for elderly and disabled residents. This office remains steadfastly committed to ensuring the integrity of HUD programs and particularly those designed to assist vulnerable populations.”
While an indictment is not evidence of guilt, the charge is punishable by up to five years in federal prison if convicted. A date for arraignment has not yet been set.
Levin & Perconti: Legal Voice for Victims of Nursing Home Abuse & Neglect in Illinois
Suppose someone you know has had their rights violated while receiving Cahill Rosewood services or were abused or neglected during their recovery stay. In that case, the attorneys at Levin & Perconti want to help. With over half a billion dollars recovered for our clients, our legal team, located in Chicago, is committed to bringing justice to families whose loved ones have been harmed by others.
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