KBWB Operations LLC, known as KBWB-Atrium Health and Senior Living, and its former chief executive officer, Kevin Breslin, have been sentenced in a major federal case involving health care fraud and tax conspiracy. The sentencing took place in the U.S. District Court for the Western District of Wisconsin after both the corporation and Breslin pleaded guilty to multiple charges connected to the operation of several skilled nursing facilities.
Kevin Breslin, aged 58 and from Hoboken, New Jersey, received a sentence of 90 months in prison. He was also ordered to pay $146 million in restitution and $8.4 million in forfeiture. KBWB-Atrium was ordered to pay the same financial amounts. Breslin pleaded guilty on Dec. 17, 2024, while KBWB-Atrium pleaded guilty on Jan. 21. Court records show that Breslin was one of six owners of KBWB-Atrium. The company had its main headquarters in Little Falls, New Jersey, and a Midwest corporate office in Appleton, Wisconsin. It operated or owned nursing facilities in Wisconsin, Michigan, and New Jersey.
The case formally began on Feb. 1, 2023, when a grand jury issued a 12-count indictment against Breslin and KBWB-Atrium. The indictment charged them with health care fraud, tax conspiracy, and other related offences.
Details of the Fraud and Misuse of Funds
According to court documents, between Jan. 1, 2015, and September 2018, KBWB-Atrium operated 23 skilled nursing facilities in Wisconsin, with Kevin Breslin having full control over the company’s business, finances, and daily operations.
The facilities relied mainly on Medicare and Medicaid payments from the Centres for Medicare and Medicaid Services (CMS) to provide resident care, staffing, maintenance, and medical supplies. Investigators found that the defendants diverted these CMS funds for personal expenses and other improper uses. Instead the company prioritized multi-million-dollar owner distributions and guaranteed payments, even when the company faced financial problems.
The government also reported that the defendants failed to inform CMS that they were not using funds as required, were not complying with federal regulations, and had not paid vendors or federal and state taxes. As a result, vendors went unpaid for essential services, and residents did not always receive the care they needed.
Tax Conspiracy and Misuse of Employee Contributions
In addition to health care fraud, the defendants were charged with tax conspiracy. Court documents show that Breslin, acting on behalf of KBWB-Atrium, directed that employment taxes withheld from employees’ pay checks should not be paid to the IRS. These taxes included withholdings intended for Medicare and Social Security benefits. Because the company did not send the taxes to the IRS, employees filed inaccurate tax returns, and their federal benefit records were affected.
The government also alleged that Breslin and the company diverted health insurance premiums and 401(k) contributions taken from employees’ pay checks. Money was also taken from resident accounts. These actions caused harm to both employees and residents and showed a pattern of ignoring legal responsibilities while withholding funds that were meant to protect vulnerable individuals.
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Statements from Federal Officials and Agencies
Assistant Attorney General Brett A. Shumate said health care fraud raises costs nationwide and harms patients. Acting U.S. Attorney Chadwick M. Elgersma stressed that protecting Medicare and Medicaid is vital for millions and praised investigators for uncovering the scheme.
Acting Special Agent in Charge Chris Ormerod of the FBI Milwaukee Field Office said the sentencing reflects the FBI’s priority to pursue those who misuse taxpayer money and endanger people relying on quality care. Special Agent in Charge Mario M. Pinto of HHS-OIG said the defendants’ actions put vulnerable nursing home residents at risk.
Special Agent in Charge Adam Jobes of IRS Criminal Investigation noted the scheme damaged employees’ Medicare and Social Security benefits by withholding taxes that were never paid to the IRS. Regional Director Mark Seidel of the Employee Benefits Security Administration said misuse of health benefit plans is a serious breach of trust.
The case was investigated by the U.S. Attorney’s Office for the Western District of Wisconsin with support from IRS Criminal Investigation, HHS-OIG, the Department of Labor’s Employee Benefits Security Administration, the FBI Milwaukee Field Office, and the Wisconsin Department of Justice’s Medicaid Fraud Control and Elder Abuse Unit.