Suburban nursing home exec charged with skimming federal funds from HUD loans

Cahill Rosewood, which owns nursing homes in St. Charles and Northbrook, was implicated in the fraud, prosecutors say.

SHARE Suburban nursing home exec charged with skimming federal funds from HUD loans
gavel.jpg

Charges have been filed in an alleged equity skimming scheme involving Cahill Rosewood.

File photo

The owner of several Chicago-area nursing homes, including homes in St. Charles and Northbrook, has been charged with skimming $1 million in federal funds.

Cahill Rosewood CEO Mark Yampol, of St. Louis, Missouri, is accused of using 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, got HUD-insured loans for all but one of his nursing homes and stopped making payments in 2015 until the loans defaulted, prosecutors said in an indictment.

From May to August 2015, Yampol 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.

He could not be reached for comment.

The Latest
Miguel DeLeon is now accused of sexually assaulting or abusing four women and a teen girl who went to his Chicago Lawn home for tattoos.
Jane Fonda, Rosanna Arquette and other stars contribute to insightful and comprehensive documentary.
What happens during the budget standoff in Congress could determine whether it becomes harder for average Americans to build wealth and pay their bills.
The arguments are convincing against approving a $1 million settlement to the family of an armed man who was killed by Chicago police. But when public trust in police is fractured, is it surprising that city lawyers would recommend paying out the $1 million?
Free from her miserable marriage, widow worries that her children will object to her seriously dating an old flame.