Trio agrees to pay over nursing home mortgage allegations
BY CARY ASPINWALL World Staff Writer
Saturday, August 18, 2012
8/18/12 at 7:39 AM
The U.S. Department of Justice recently announced a multimillion-dollar settlement with three men who are accused of knowingly making false statements as part of a nursing home mortgage-refinance scheme.
Philip M. Green, Jerry Max Jiles and Virgil M. Harry Jr. collectively agreed to pay more than $5.3 million to resolve allegations that they knowingly made false statements in applications to the U.S. Department of Housing and Urban Development for HUD-insured mortgage refinancing for three Oklahoma nursing homes.
The United States alleged that the men made false statements regarding the eligible debt of the three nursing homes to get cash from the mortgage refinancings.
Green was president and Jiles was corporate secretary of three companies that owned and operated the residential nursing facilities in Oklahoma involved in the claims: the Bartlesville Health Care Center Inc., which operated as Silver Lake Care Center in Bartlesville; Mannford Health Care Center, which operated as Cimarron Pointe Care Center in Mannford; and Owasso Nursing Center Inc., which operated as Sequoyah Pointe Living Center in Owasso. Harry was the former president of the Harry Mortgage Co.
When the Bartlesville facility's loan defaulted in 2008, it resulted in a mortgage insurance claim of more than $3.2 million being paid by HUD.
As part of the settlement agreement, there was no determination of liability, according to the Justice Department. Jiles and Green each agreed to pay $2,625,000; Harry must pay $75,000.
"Mortgage lenders and borrowers must deal fairly and honestly when public money is on the line," Stuart F. Delery, acting assistant attorney general for the Department of Justice's Civil Division, said in a press release.
"The Department of Justice will tirelessly pursue mortgage lenders and borrowers who make false representations to enrich themselves at the public's expense," he continued.
The allegations arose as a result of audit work conducted by HUD's Office of Inspector General.
Oklahoma Department of Health records show that Silver Lake Care Center of Bartlesville closed in April 2009 and re-opened as Adams Parc on or about Dec. 1, 2011.
Green is listed as a partner/stockholder in at least 15 nursing homes throughout the state, although he is no longer an owner or associated with Bartlesville's Adams Parc, records show.
At one point, Jiles was listed as owner of as many as 10 nursing homes in Oklahoma, records show. He is now listed as a "former owner" and "no longer associated" with those homes, according to the Department of Health.
Records list Jon P. Jiles as one of the owners with a controlling interest in the company now operating Adams Parc in Bartlesville. He is also listed as a partner/stockholder in Oklahoma City's ParcWay home.
Original Print Headline: HUD nursing home case settled
Cary Aspinwall 918-581-8477