SW Management Pays United States $546,290

OFFICE OF THE UNITED STATES ATTORNEY
SOUTHERN DISTRICT OF ILLINOIS
RONALD J. TENPAS UNITED STATES ATTORNEY
Nine Executive Drive
Fairview Heights
Illinois 62208
Phone (618) 628-3700

FOR IMMEDIATE RELEASE:
July 1, 2004

United States Attorney RONALD J. TENPAS announced today that his office reached a settlement with SW Management, an Illinois corporation located in Skokie, Illinois, that manages a number of nursing homes throughout the State of Illinois, including several in the Southern District of Illinois.  SW Management has paid the United States $546,290.00 to settle allegations concerning SW Management's Medicare billing practices.

The United States alleged that SW Management submitted or caused the submission of improper cost reports for Cahokia Nursing and Rehab Center, Caseyville Nursing and Rehab Center, and Virgil Calvert Nursing and Rehab Center, which were executed by the homes' president, Sheldon Wolfe, and improper home office cost reports for SW Management.  The United States alleged that the reports contained consultant costs for Ronnie Klein and Benjamin Klein that were neither directly related to patient care nor properly documented and further that those cost reports contained unallowable intercompany interest expenses that violated Medicare regulations and rules prohibiting related-party transactions and that were not properly documented.

The case was investigated by the United States Department of Health and Human Services Office of Inspector General and handled by Assistant United States Attorney James L. Porter and Paralegal Specialist Paul Fairbanks.