Employee of Virgnia Nursing Home Chain Involved in Kickback Scheme in Roanoke

The following was reported by WSLS 10:

Two Virginia contractors pleaded guilty today to participating in a scheme to steer maintenance and repair contracts at healthcare and nursing home facilities owned by Medical Facilities of America Inc. (MFA) to their plumbing business, according to the Department of Justice.

The two men pleaded guilty in U.S. District Court in Roanoke to conspiring with another individual to steer contracts for repair and maintenance at MFA healthcare and nursing home facilities. According to the criminal charges, from about June 1998 until at least December 2006, the men, former co-owners of Virginia-based Hardy Plumbing & Heating Corp., conspired with an MFA employee who oversaw the bidding process for repair and maintenance contracts at MFA facilities in North Carolina and Virginia. The department said that the MFA employee steered contracts to Hardy Plumbing in return for kickbacks.

According to the court documents, the two men and the MFA employee created fictitious competitor bids that were higher than the quotes submitted by Hardy Plumbing to create the appearance of competition. The MFA employee also specified the amount Hardy Plumbing should quote to MFA as well as the amount of the kickback on each of the contracts. As a result of the kickback scheme, the plumbing company paid more than $250,000 directly to the MFA employee.

The pleas are the second and third to arise out of the department’s ongoing fraud investigation into the award of repair and maintenance contracts at facilities owned by MFA. On April 4, 2011 a contractor and resident of Norfolk, Va., pleaded guilty in U.S. District Court in Norfolk to conspiring with others to steer contracts for repair, maintenance and renovation at MFA healthcare and nursing home facilities.The investigation being conducted by the U.S. Attorney’s Office for the Western District of Virginia, the FBI in Roanoke and the Internal Revenue Service-Criminal Investigation in Roanoke is ongoing. For more, read the story.


Robert W. Carter, Jr. is a Virginia attorney whose law practice is dedicated to protecting the rights of the victims of nursing home and assisted living neglect and abuse in Richmond, Roanoke, Norfolk, Lynchburg, Danville, Charlottesville, and across Virginia.

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