The owner of several Chicago-area nursing homes, including in St. Charles and Northbrook, is charged with skimming $1 million in federal funds.
Cahill Rosewood CEO Mark Yampol, of St. Louis, Missouri, allegedly used mortgages insured by the U.S. Department of Housing and Urban Development to pay expenses of a non-HUD-insured nursing home, according to the U.S. attorney’s office in Chicago.
Yampol, 57, allegedly got HUD-insured loans for all but one of his nursing homes, but stopped making payments in 2015 until the loans defaulted, prosecutors said in an indictment.
From May to August 2015, Yampol allegedly diverted $1.1 million in funds from the HUD-insured facilities to the one non-HUD-insured facility in rural Galesburg, prosecutors said.
In 2018, Cahill Rosewood defaulted on the mortgages, worth $146 million — the biggest collapse in the history of a loan-guarantee program run by HUD, the New York Times reported.
In 2014, the Cahill Group acquired a St. Louis-based Rosewood nursing homes and skilled-care centers for $250 million.
Yampol faces one count of equity skimming, a charge punishable by five years in prison, prosecutors said.
Yampol could not immediately be reached for comment.
