Napenas was sentenced to 30 days in the county jail and three years' probation, and must pay nearly $380,000 to federal and state governments. A state investigation revealed that he billed the Medicaid program for hundreds of thousands of dollars... and let's just say he did not use the money wisely. Or legally:
After a state investigation that led him to close the facility in 2007, Napenas pleaded guilty in August to fraudulently billing Medicaid for $302,877. The investigation began after state surveyors found deficient patient care. A financial audit revealed that Napenas included $100,000 in family trips to the Philippines, dance lessons and large family dinners in the facility's 2005 cost report, according to the state health department.Shady. Well, sure. You use Medicaid money like that, the fairly obvious "irregularities" were bound to pop up on somebody's radar. And seriously -- dance lessons? That's just embarrassing. More here: N.J. nursing home owner Victor Napenas admits to Medicaid fraud.
The judge ordered Napenas to repay Medicaid in full. He also must pay $45,263 in penalties and $31,859 in back state taxes. He's forbidden to act as a Medicaid provider for eight years.