A former nursing home executive named Antonio Giordano who was jailed for conspiracy and embezzlement has filed for bankruptcy. As a result, the government cannot recover millions of taxpayer dollars that authorities say Antonio Giordano and his associates skimmed from failing nursing homes. The Providence Journal reports that Giordano filed for Chapter 7 protection on Oct. 13. He claims he cannot pay nearly $800,000 he owes to the Internal Revenue Service.
The filing puts on hold a lawsuit accusing Giordano and others of enriching themselves by illegally diverting more than $6 million meant for resident care from two nursing homes. In 2006, Giordano admitted to skimming money from three nursing homes as they defaulted on federally backed mortgages.