Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (2022)

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  • Mark Bowes

The former owner of a deteriorating assisted living home in South Richmond who stole more than $800,000 in government benefits intended for the residents she served was sentenced Thursday to two years in prison on her conviction of health care fraud. Mable Jones used the misappropriated money to fund her gambling addiction and pay credit card bills, among other personal expenses.

Following a protracted sentencing hearing held Wednesday and Aug. 9 in U.S. District Court in Richmond, Judge M. Hannah Lauck sentenced Jones, 79, to 24 months in prison and ordered her to make full restitution for the funds she diverted. Lauck said she struggled crafting an appropriate punishment due to Jones’ age and chronic health problems, telling Jones, “I’m giving you mercy.” But the judge refused to grant Jones the home detention she sought.

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The punishment was a significant downward departure from discretionary federal sentencing guidelines, which for Jones was calculated at between 70 and 87 months in prison.

Jones owned and operated Jones & Jones assisted living home for elderly and incapacitated persons at 7804 and 7806 Forest Hill Ave. from 1998 until it was forced to close in the spring of 2019.

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (1)

Lauck had harsh words for Jones’ treatment of the residents in her care as she read state inspection reports about the abuse and neglect they received. “This is just so basically inhumane,” the judge said. “You wouldn’t treat an animal that way.”

Lauck also noted that five of Jones’ residents died while in her care, four of whom were struck by cars and killed near the intersection of Forest Hill Avenue and Sheila Lane. Residents of the home, many with serious mental health problems, were sometimes mistaken for being homeless and often seen panhandling near the corner, the Richmond Times-Dispatch reported in 2018 .

“You began this [fraud] when you were 71 years old, and it went on for years,” the judge said. “It was a remarkable scheme. It was repetitive and deliberative.”

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Due to Jones’ age, physical condition, extensive health problems and post-offense rehabilitation related to her gambling addiction, her attorneys had sought a downward variance in punishment that would include a term of probation combined with home detention — in lieu of a prison term. They said Jones suffers from numerous health ailments, and contracted COVID-19 in January 2021 and nearly died.

But prosecutors, in a sentencing memorandum filed with the court and during cross examination last month of a doctor who testified on Jones’ behalf, argued that Jones’ medical records do not support the dire picture of her health as presented by her attorneys.

Dr. Christina Prather, an expert in geriatric medicine, testified Aug. 9 that Jones is in poor health and “standing on the edge of a medical cliff.”

But during cross examination, Assistant U.S. Attorney Shea Gibbons picked apart some of Prather’s testimony related to the severity of Jones’ ailments, noting, for example, that medical records don’t show Jones nearly died from COVID and that she wasn’t taking medication for diabetes, one of her conditions asserted by the defense.

Further, federal prosecutors said Jones’ advanced age does little to mitigate the seriousness of her crime or the need to punish her for it. They argued that the federal Bureau of Prisons is “well-equipped” to meet her needs and frequently cares for inmates requiring far greater levels of care.

“Jones was well into her 70s when she undertook this scheme,” Assistant U.S. Attorney Kaitlin Cooke wrote in the government’s sentencing memorandum. “Looking in the eyes of her residents each day should have been like looking in a mirror. But Jones ignored the burdens her crime imposed on dozens of residents of equivalent or more advanced age, most of whom had little-to-no ability to meet their own needs.”

“Jones’s medical needs should not — and cannot — determine the appropriate sentence in this case, particularly in light of her persistent and egregious failure to meet the same needs for dozens of Jones & Jones residents,” Cooke added.

According to evidence, Jones, through fund transfers, cash withdrawals and retail purchases, siphoned more than $823,000 in Social Security and Virginia Department for Aging and Rehabilitative Services benefits entrusted to her for the care and maintenance of Jones & Jones residents who, because of various problems, were unable to care for themselves or manage their own affairs.

Instead of using that money to meet the basic needs of 141 residents for whose care the funds were designated, Jones paid her own debts, including her personal mortgage, Chapter 13 bankruptcy payments and monthly credit card debts.

She also traveled frequently to casinos in Atlantic City, N.J., and Las Vegas, “where she gambled away resident funds and made lavish retail purchases,” Cooke wrote. In addition, Jones supported family members, including her daughter, through “substantial wage and check payments they were not entitled to receive.”

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By failing to use the funds she received for residents as required, Jones “created significant and persistent deficiencies in the facilities, care and services provided to those individuals.” As state inspections over the years revealed, Jones “endangered the residents’ health and safety, leaving them at risk of death and serious bodily injury,” Cooke wrote.

The violations included inadequate staffing and supervision, a lack of adequate food, deficient toilet facilities and soap, failures to address resident hygiene and clothing needs, and an extreme bedbug infestation resulting in “residents being constantly bitten by bugs over their entire body,” among other problems.

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (2)

Agents from the FBI, Social Security Administration and the U.S. Attorney General’s Office conducted a search of Jones’ facilities in November 2018.

On Aug. 9, Social Security Special Agent Gavi Simms testified that the residential unit he entered was dilapidated, contained putrid odors, was infested with roaches and bed bugs throughout, and the kitchen contained food that was improperly stored and moldy. A photo displayed on a monitor in court showed a “red line” along the seam of a mattress that Simmons testified was actually a column of “bed bugs moving along the seam.”

In court documents, prosecutors cited Times-Dispatch articles published in 2018 in which residents complained of abuse and filthy living conditions, along with advocates’ concerns about the facilities.

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (3)

Prosecutors said Jones’ actions were deliberate and reasoned, as evidenced by the lengths she took to conceal her theft of residents’ funds. Each year, she completed bogus reports and certifications to the Social Security Administration and Virginia Department for Aging and Rehabilitative Services in which she falsely declared that Jones & Jones had received and expended its residents’ benefits on services for which those funds were authorized.

When a February 2018 Social Security Administration audit revealed multiple fund transfers from Jones & Jones accounts to Jones’ personal checking account, Jones lied about how she had used the money, maintaining she had purchased items for residents when, in fact, “she had gambled the funds away at Atlantic City casinos.”

Jones’ attorneys, federal public defender Mary Maguire and attorney Jeremy Theisen, said their client successfully operated the nursing home facilities for a significant period of time but, eventually, “things began to fall apart.”

Faced with high rent fees and paying for many repair and maintenance issues, Jones became overwhelmed by maintaining both buildings on Forest Hill Avenue. Consequently, she began to make a series of bad decisions that ultimately led to her federal indictment, they said.

“Those decisions involved using money designated for the residents to fund personal expenses, with the majority going to fund her significant gambling problem,” the attorneys said. “As things at Jones & Jones started to deteriorate, she turned to gambling as an escape, using gambling as a maladaptive coping mechanism to try to escape the pressure and responsibilities of her work at Jones & Jones.”

Jones began managing nursing home facilities in the 1990s, and had developed a “well-respected reputation” as a nursing caretaker and manager, her attorneys said. She received accolades for her work and was listed in the National Register’s Who’s Who in executives and professionals. She also served as president of the Adult Home Association for six years.

“I’m so ashamed,” Jones said in prepared remarks when given a chance to speak. “I violated the trust of the people I [was entrusted] for care for and their family members. I’ve constantly asked myself, ‘How could you let it come to this?’”

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Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (4)

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Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (45)

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Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (46)

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Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (133)

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Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (134)

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Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (135)

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Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (136)

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Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (137)

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Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (138)

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Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (140)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (141)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (142)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (143)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (144)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (145)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (146)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (147)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (148)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (149)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (150)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (151)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (152)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (153)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (154)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (155)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (156)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (157)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (158)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (159)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (160)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (161)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (162)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (163)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (164)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (165)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (166)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (167)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (168)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (169)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (170)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (171)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (172)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (173)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (174)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (175)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (176)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (177)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (178)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (179)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (180)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (181)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (182)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (183)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (184)

1956 Richmond Virginians

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (185)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (186)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (187)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (188)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (189)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (190)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (191)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (192)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (193)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (194)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (195)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (196)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (197)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (198)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (199)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (200)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (201)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (202)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (203)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (204)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (205)

1954 Branch House

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (206)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (207)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (208)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (209)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (210)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (211)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (212)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (213)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (214)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (215)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (216)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (217)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (218)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (219)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (220)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (221)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (222)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (223)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (224)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (225)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (226)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (227)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (228)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (229)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (230)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (231)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (232)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (233)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (234)

Richmond in the 50s (229).jpg

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (235)

Richmond in the 50s (230).jpg

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (236)

Richmond in the 50s (231).jpg

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (237)

Richmond in the 50s (232).jpg

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (238)

Richmond in the 50s (233).jpg

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (239)

Richmond in the 50s (234).jpg

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (240)

Richmond in the 50s (235).jpg

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (241)

Richmond in the 50s (236).jpg

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (242)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (243)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (244)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (245)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (246)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (247)

Richmond in the 50s

Ex-owner of South Richmond assisted living home gets 2 years in $823K federal health care fraud case (248)

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(804) 649-6450

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