KBWB Operations LLC, also known as Atrium Health and Senior Living, and its former chief executive officer Kevin Breslin were sentenced in the U.S. District Court for the Western District of Wisconsin after pleading guilty to health care fraud and tax conspiracy. The sentencing follows a lengthy investigation into the operation of several skilled nursing facilities.
Kevin Breslin, 58, from Hoboken, New Jersey, received a sentence of 90 months in prison. He was ordered to pay $146 million in restitution and $8.4 million in forfeiture. KBWB-Atrium was also required to pay the same amounts. Breslin entered his guilty plea on December 17, 2024, while KBWB-Atrium pleaded guilty on January 21. Court documents state that Breslin is one of six owners of KBWB-Atrium, which had its main office in Little Falls, New Jersey, and a Midwest office in Appleton, Wisconsin. The company operated or owned nursing facilities across New Jersey, Wisconsin, and Michigan.
Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division said: “Health care fraud drives prices up for all Americans and can cause serious negative outcomes for patients. We remain dedicated to working with our law enforcement partners to protect the most vulnerable Americans from those who would take advantage of them.”
Acting U.S. Attorney Chadwick M. Elgersma for the Western District of Wisconsin added: “Protecting Medicare and Medicaid is not just about preserving the programs. It is about safeguarding the dignity, health, and financial security of the millions of Americans who rely on them. I commend the investigators and prosecutors who identified Mr. Breslin’s fraud scheme and worked tirelessly to hold him accountable for his serious criminal conduct.”
Acting Special Agent in Charge Chris Ormerod of the FBI Milwaukee Field Office stated: “Today’s sentencing underscores an investigative priority of the FBI. The FBI, in collaboration with its partners have not lost sight of investigating people and companies that misuse taxpayers’ money for personal gains and at the expense of people needing quality healthcare. The safety and well-being of Wisconsin residents remains our highest priority.”
Special Agent in Charge Mario M. Pinto from HHS-OIG Chicago Region commented: “The defendant’s actions not only defrauded federal health care programs but also jeopardized the well-being of vulnerable nursing home residents. HHS-OIG will continue to work closely with our law enforcement partners to hold accountable those who exploit programs meant to provide essential care and services to our nation’s most at-risk populations.”
Special Agent in Charge Adam Jobes from IRS Criminal Investigation Chicago Field Office said: “Greed was the driving force behind this scheme, which not only defrauded our health care system but also violated employment tax obligations. By failing to pay over withheld taxes, the defendants harmed their employees’ Medicare and Social Security benefits — while also exploiting healthcare programs meant to protect the most vulnerable.”
Regional Director Mark Seidel from Employee Benefits Security Administration in New York noted: “Health care and the health benefit plans that provide coverage are of the utmost importance in everyday lives. The Employee Benefits Security Administration remains committed to working with our law enforcement partners to bring to justice those who break the law and abuse their positions of trust while managing health benefit plans.”
A grand jury indicted Breslin and KBWB-Atrium on February 1, 2023 with multiple charges including health care fraud and tax conspiracy related offenses spanning from January 2015 through September 2018 when KBWB-Atrium operated 23 skilled nursing facilities in Wisconsin.
According to court records cited by authorities during prosecution:
- Federal Medicare and Medicaid funds were allegedly diverted by defendants for personal use instead of resident care.
- Defendants prioritized owner distributions even when finances were strained.
- Required disclosures regarding fund usage were not made; vendors went unpaid; residents sometimes lacked adequate care.
- Health insurance premiums, employee retirement contributions (401k), as well as resident account funds were diverted.
- Employment taxes withheld from employees' paychecks were not remitted to IRS.
These actions led employees to file inaccurate tax returns reflecting incorrect withholding amounts.
The case was prosecuted by trial attorneys from the Civil Division’s Enforcement and Affirmative Litigation Branch alongside federal agencies including IRS Criminal Investigation (Chicago), HHS-OIG (Milwaukee), Employee Benefits Security Administration (New York/Chicago), FBI (Milwaukee), as well as state-level investigators specializing in Medicaid Fraud Control.
