PROVIDENCE, R.I.—A former nursing home executive jailed for conspiracy and embezzlement has filed for bankruptcy.
As a result, the government cannot recover millions of taxpayer dollars that authorities say Antonio Giordano and his associates skimmed from failing nursing homes.
The Providence Journal reports ( http://bit.ly/oGCM9o) that Giordano filed for Chapter 7 protection on Oct. 13. He claims he cannot pay nearly $800,000 he owes to the Internal Revenue Service.
Jim Martin, spokesman for the U.S. attorney's office, says the filing puts on hold a lawsuit accusing Giordano and others of enriching themselves by illegally diverting more than $6 million from two nursing homes.
Giordano admitted in 2006 to taking money from three nursing homes as they defaulted on federally backed mortgages or operated in the red.
Information from: The Providence Journal, http://www.projo.com/