New Jersey relatives steal millions from Medicaid while neglecting patients
- An investigation revealed that three men defrauded New Jersey's Medicaid program while neglecting patient care.
- The men's practices resulted in severe abuse and unsanitary conditions in the nursing homes, impacting vulnerable residents.
- As a consequence, they are now barred from being Medicaid providers, ensuring resident safety in the future.
In New Jersey, an investigation led by the state comptroller's office revealed extensive fraud and neglect involving three men managing a group of nursing homes. The individuals, Mordechay Weisz, Steven Krausman, and Michael Konig, exploited the state’s Medicaid program to embezzle millions of dollars while providing inadequate care for residents. Over a span of five years, their businesses earned $253 million, with a staggering 76 percent derived from Medicaid funds. The report outlines how these operators funneled money into personal accounts and family-run businesses, ignoring the basic needs of vulnerable individuals under their care. The state comptroller’s report highlighted severe deficiencies at South Jersey Extended Care in Bridgeton, including appalling living conditions characterized by unsanitary environments, lack of medical attention, and instances of abuse. Notable inspection findings documented a bedroom filled with flies, a broken toilet, and overall neglect that put residents in danger. Mr. Konig's troubled past, including being banned from operating nursing homes in Connecticut and Massachusetts since the 1990s, intensifies the scrutiny surrounding these operations. As the corruption came to light, the state moved to prevent these individuals from serving as Medicaid providers, initiating suspensions to protect residents. The comptroller’s office discovered that these men did not disclose their financial transactions to state or federal authorities to avoid drawing attention to their conflicts of interest. The financial collapse of South Jersey Extended Care came as Mr. Weisz extracted $1.3 million while his associates earned a collective $45.5 million by overcharging fellow facilities, further raising concerns about their business practices. The report raised alarms within the community about the vulnerable residents affected by this scandal, and state officials are taking measures to ensure their care is transitioned to more responsible providers. The findings demonstrate not only the accountability issues rampant in nursing home management but also raise significant questions about the protective measures in place for residents relying on these facilities for care.