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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.

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