Nursing Home Executives Indicted On Conspiracy, Fraud, False Statements, And Tax Charges

fbi.gov, May 14, 2007

Three former nursing home executives, one a lawyer, were charged yesterday in a federal indictment with various offenses related to their operation of nursing homes located in Texas and elsewhere, announced U.S. Attorney Richard B. Roper of the Northern District of Texas. A federal grand jury in Fort Worth returned the 29-count indictment charging Gary R. Trebert, Stephen Michael Ewing, a/k/a “Stephen Michaels,” and Larry Gordon May each with one count of conspiracy to defraud the Internal Revenue Service (IRS) and the U.S. Department of Health and Human Services (HHS), nine counts of tax evasion, five counts of mail fraud, seven counts of false statements to a government agency and seven counts of false statements relating to health care matters.

U.S. Attorney Roper said, “This indictment reflects federal law enforcement’s commitment to effectively address those who use nursing homes to defraud the federal government and enrich themselves. Nursing homes should be businesses of stability rather than vehicles to commit fraud.”

“Fiscal predators make all of us pay for their illegal activity and it cannot be tolerated,” said Erick Martinez, Special Agent in Charge of the Dallas Field Office of IRS Criminal Investigation. "When allegations arise that certain individuals and corporations are abusing the tax system to avoid paying their fair share of tax, the IRS will vigorously investigate them. It is a matter of maintaining public confidence in the fairness of the tax laws. Today's indictment is the result of such an investigation," Martinez said. Read more at fbi.gov.