Former Owner Of Defunct Nursing Home Sentenced For Embezzling $800K

Stanley J. Rodowicz, Jr., 57, previously of Canterbury, Connecticut and now of Wellington, Florida, was sentenced to 18 months in federal prison for embezzling more than $800,000 from Village Manor Health Care Inc. of Plainfield, Connecticut, a now defunct nursing home while it was in bankruptcy.  Prosecutors alleged that from 2007 to 2010, Rodowicz controlled the nursing home’s bank accounts, cash, accounts receivable and accounts payable, enabling him to siphon $817,212 from the nursing home’s accounts and falsified the books and records of the nursing home during the bankruptcy proceedings to conceal the embezzlement.  Rodowicz was also ordered to pay $495,212 in restitution after he had previously paid back about $322,000.

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Delaware Businessman Gets 5 Years For Fraud

Andrew N. Yao, 47, of Radnor, Delaware and the former CEO of Student Finance Corp., was sentenced last week to 5 years in prison for fraud. Yao was also ordered pay more than $12.5 million in restitution resulting from his fraudulent scheme to try to keep the company in business. Yao allegedly made false statements to banks for loans in the amount of some $40 million. Many of the more recent loans were used to pay off earlier ones. Meanwhile Student Finance Corp. had losses approaching $400 million and a default rate of nearly 80 percent. The company filed for bankruptcy at the end of 2002. Yao, who is married, previously plead guilty and was sentenced to one year in prison for fraudulent transfers to pay for gambling debts and his girlfriend, Playboy Pet Alexandria "Lexie" Karlsen Wolfe's living expenses. He pleaded guilty last June to 10 fraud counts in this case and admitted that he spent some of the loan money on a $4 million private plane and his $3 million Nantucket home.

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Read the original DOJ announcement here.

Read the Bankrupcty Court opionion here.

Iowa Meatpacking Exec Arrested On Bank Fraud Charges

Sholom Rubashkin, 49, former CEO of Postville, Iowa-based kosher meatpacking company, Agriprocessors, was arrested on bank fraud charges Friday morning. Rubashkin had also been arrested late last month on federal charges of conspiring to hire undocumented workers at the meat processing plant, but was out on bond. The new charges allege that Rubashkin diverted at least $10.9 million in funds from Agriprocessors accounts to other accounts, including one for Kosher Community Grocery, in which he is a part owner. Agriprocessors filed for bankruptcy last month after an ICE raid apprehended nearly 400 illegal alien workers at the plant. Last year, Agriprocessors executives agreed to pay $1.4 million to settle a separate case alleging a scheme to hide another company’s assets in bankruptcy. Rubashkin faces up to 52 years in prison if convicted on all the charges. We also note that Sholom's brother, Moshe Rubashkin, was convicted of bank fraud in 2002 and sentenced to 15 months in prison.

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Palm Beach Socialite Charged With Bankruptcy Fraud

Linda "Lin" Castre Gosman, 59, the wife of bankrupt heath care executive Abraham Gosman, pictured together here, was indicted yesterday on 16 felony charges, including five counts of bankruptcy fraud, two counts of mortgage fraud, nine counts of structuring and related forfeiture. The indictment contends Gosman owes $66 million in her husband's bankruptcy case and charged her with attempting to hide assets including expensive jewelry and artwork. It further contends she attempted to conceal assets through withdrawls from offshore bank accounts.

Read the story here and here.