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Local Law Firms Home > Nursing Home Abuse News > Nursing Home Complaints Uncover Fraud George Dayln Houser of Atlanta, GA and his wife operated three nursing homes. In between July 2004 to Sept 2007, the Housers billed Medicare and Medicaid more than $32.9 million for medicines, food and other services provided to the elderly people in their care. They did not provide anything to their patients, and instead spent all the money on real estate investments in hotels and a home for themselves. The patients were found starving and badly in need of medical care. The Housers ran two nursing homes in Rome, GA with around 100 residents each and another one in Brunswick, GA which had over 200 residents. For the three year period in question, they billed Medicare and Medicaid $39.4 million and were paid $32.9 million based on the fraudulent claims of providing residents with good food and care that enhance the quality of their lives. The trial showed the extent of the abuse, with residents almost starving and living in completely unsanitary conditions under leaky roofs with heat, flies and stench all around and with little or nothing in the form of nursing staff or medical attention. Instead, the money was spent on a $4.2 million hotel complex plan in Rome and a $1.4 million mansion. Luxury automobiles and furnishings were purchased with Medicare money. Alimony payments for his wife were made by putting her on the payroll as nursing staff. After multiple complaints, the Georgia Office of Regulatory Services (ORS) inspected all three facilities and shut them down in 2007. The health care fraud investigation led to another investigation by the IRS which showed tax fraud too, in the form of failure to pay payroll taxes and file their own tax returns. The Housers did not pay in contributions for employer funded health care plans. George Houser has been convicted and is awaiting sentencing, with a possible 20 year maximum for the health care fraud and more for the multiple counts of tax frauds.
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