Nursing Home Operators Face Fallout After Shocking Fraud and Abuse Investigation

A recent investigation by New Jersey's state comptroller's office has uncovered a shocking case of fraud and abuse involving three men who operated multiple nursing homes in the state. Mordechay Weisz, Steven Krausman, and Michael Konig, are now facing disqualification from being Medicaid providers after their alleged mismanagement resulted in millions being siphoned from the state's Medicaid program and left vulnerable residents in deplorable conditions. The report, released on Thursday, describes "glaring failures" at the nursing homes, particularly South Jersey Extended Care in Bridgeton and Sterling Manor in Maple Shade, both of which persistently received low ratings from the federal government. The findings paint a harrowing picture of unsanitary living conditions, medical neglect, and outright abuse. For instance, inspectors reported a bedroom infested with flies, a filthy refrigerator, and a broken toilet that went unrepaired for days. In another alarming incident, a nurse’s aide was accused of locking a resident with dementia in a room using a trash bag. Evidence of systematic neglect did not stop there. Residents were often deprived of their medications, sometimes for hours at a time, and key medical staff, such as a licensed director of nursing and a social worker, were notably absent. The facility's director of nursing had even faced disciplinary action for serious infractions, including allegations of forgery related to prescriptions. The investigation revealed that the three operators manipulated contracts with businesses they controlled, inflating prices and failing to deliver necessary services, which jeopardized patient care. This deceitful practice allowed them to profit immensely from the suffering of individuals who had no other options for care. In total, the entities controlled by these men collected an astonishing $253 million over five years, heavily reliant on Medicaid funding, which constituted 76 percent of their revenue. Further scrutiny revealed that Konig had a long history of problematic behavior in the nursing home industry, having been barred from operating facilities in Connecticut and Massachusetts due to serious violations. To circumvent regulations in New Jersey, he transferred ownership of the nursing homes to Weisz, while maintaining control behind the scenes, a manipulation that allowed him to continue profiting from the operations. As the comptroller's office continues its investigation, it has already initiated steps to cut off Medicaid funding to the facilities, which will imminently affect their operations. Although the full impact on the residents remains unclear, officials are committed to ensuring that proper care is arranged for those affected. The grim reality at South Jersey Extended Care and Sterling Manor is a stark reminder of the vulnerabilities present in the nursing home system, particularly concerning oversight and accountability. The report highlights a critical need for reform to protect the elderly and disabled from exploitation and neglect, ensuring that those who are charged with their care are held to the highest standards. In the wake of these findings, public outrage is mounting, with calls for stricter regulations in the nursing home industry to prevent similar occurrences in the future. The welfare of residents must take precedence over profit, as the state grapples with the fallout from this deeply troubling investigation. As Kevin Walsh, the acting state comptroller, aptly noted, "These individuals were able to amass a fortune by pretending to be independent parties… in reality, they operated as one unit, providing terrible care to the sick, the elderly, and the poor, so they could make big profits."