Tuesday, October 18, 2016

The use of shell corporations is 'old hat' in the health care industry

The use of shell corporations is 'old hat' in the health care industry.

It is not unusual for the cadre of heath care providers and especially nursing home operators to divide up the elements of the  business so that when there is an audit there are many players.

Lets put a nursing home together.   First the nursing home must have land and buildings.   A separate entity is formed to purchase the land.   This land is then placed in a 'land trust' and the entity that owners the beneficial trust interest is either a corporation, a partnership or an LLC.    This is a safe entity because it leases the land the the building to the nursing home operation.   It makes its money by receiving rent from the primary corporations.    This is a fix amount.

(The financing of this unit may be by direct capital investment in one of the various primary corporations or a mortgage from a bank.   There are also so variations on the theme = but these distract from the primary disclosures of this e-mail).

The nursing home operation has a bunch of primary corporations.   1) there is the operating entity.   This entity provides the actual management.   It is engaged by the owners of the number 2) corporation which leases the land from the aforesaid owner entities (entity) and has the obligation to pay rent.   The leasing corporation (corporation number 2) usually has investors who are garnered by the operator to provide the cover of individual and legitimate ownership.    In most cases these people are people of 'character' and repute and intent on earning a generous return on investment.   Ask any of these investors - they believe that they are the "nursing home."    In most cases their entity hires the licensed administrator of the facility.

The facility farms out its operations:   Nurses are hired from a corporation that employs nurses who are sent to the facilities as needed.   A facility may hire a certain number of nurses on its own, but most come from this nursing employment agency.   The contract with this agency provides that the agency will endeavor to fulfill the Statutory staff requirements as it relates to nurses.   Linen supply, Utilities, Janitorial, Pharmaceutical, equipment leasing etc are sub=contracted to corporations.

The Morgan case describes the relationship between the Operating officers and the corporation.   The CEO et al are usually youngsters who have little or no experience but a great deal of ignorance and arrogance.   Simply put each is hired at an inflated salary so whistle blowing and oversight are actively discouraged.   The dupe is hired to be a convenient cover so that the real parties in interest have deniability and insulation for criminal prosecution.   

The net is that the day to day operations while carefully supervised by the miscreant operators to maximize profits are carefully insulated so that the operators always appear to have clean hands and can point at one of arrogant youngsters as the culprit for  whatever action might be deemed to have crossed the line.   You will find this pattern in just about every "large" nursing home operation (i.e. operation of 300 beds or more)  

The operation is so lucrative that they even have their own currency.  It is not unusual for professionals to be paid in "nursing home beds" or in opportunities.   I heard that the Chicago operation purchased a casino in ****** and its money laundering operations are conducted thru it and similar ventures.   (I got cut off by Jerome Larkin's cover=up operation before I learned the details of this part of the venture worked - however, I am certain that the FBI will extract that part of the venture in due time.

I am certain that Mr. Philip Esformes is privy to the said details and I have tried by putting the word out on the street to Mr. Esformes that he has something that will win him the gratitude of the Federal Investigators who are engaged in conducting that "honest investigation" that Mr. Jerome Larkin, the Illinois Attorney Registration and Disciplinary Commission and the Illinois Supreme Court would like to suppress.        

It is also my understanding that he (Esformes) has extensive knowledge as to the unholy relationship between the cabal, local law enforcement, the health care industry, and the corrupt political and judicial establishment.   As this operation has been copied Nationwide and the same pattern of conduct is used in Illinois, Florida, New York et al ********  

I am gratified and delighted to see Indiana cracking down.  Holding a public office is a public trust and the quid pro quo between the elites of the establishment and the infamous pirates who are engaged in Elder Cleasing is a cancer that is well on its way to destroying our democracy.    Yes - Mr. Larkin - the HONEST INVESTIGATION that Ms Farenga complained that Ms. Denison and I were demanding is going to occur and be effective in spite of your "cover up" and intimidation. 

From:Sent: Monday, October 17, 2016 2:33 PM
Subject: Correlation [kawr-uh-ley-shuh n, kor-] /ˌkɔr əˈleɪ ʃən, ˌkɒr-/

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