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Former nursing home owners to pay consent judgments
LTC Liability Monitor, July 5, 2006
The Attorney General's (AG) office in Boston obtained consent judgments against four former Massachusetts nursing home owners for contempt penalties, receivership costs, and attorney's fees, according to a press release from AG Tom Reilly's office. The AG alleged that the owners had grossly mismanaged the facilities, leaving the residents at risk for serious injury. During the course of the litigation the AG's office learned that the owners had paid hundreds of thousands of dollars to their creditors and granted mortgages to purported creditors on property they owned or controlled. It also learned that owners conveyed property to a nondefendant family member who then sold the property for almost $2.5 million; all three incidents allegedly violate a preliminary injunction. Former owners will pay $560,000 to the state, according to the press release.
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