Rome couple accused of $30 million Medicare and Medicaid fraud

By Alexis Stevens

The Atlanta Journal-Constitution

While residents in their nursing homes suffered, a Rome couple is accused of using more than $30 million worth of federal funds to buy real estate and fancy cars, according to the U.S. Attorney's Office.

George D. Houser, 62, and his wife, 46-year-old Rhonda Washington Houser, were arraigned Friday on charges of conspiring to defraud the Medicare and Georgia Medicaid programs. George Houser also faces charges for allegedly failing to pay payroll taxes to the IRS and file personal income tax returns.

"These defendants are charged with spending Medicare and Medicaid money to buy cars and real estate while nursing home residents went without basic necessities such as food and medicines," U.S. Attorney Sally Quillian Yates said in a statement.

Between 2004 and 2007, the Housers managed two nursing homes in Rome and one in Brunswick, according to information presented in court. Federal and state programs paid the Housers for nearly all of the expenses for the care of the approximately 300 residents in the homes, according to Patrick Crosby, spokesman for the attorney's office.

The Housers continued to submit claims for payments and they received them, according to testimony. But the care they provided to the nursing home residents was inadequate.

Examples of the inadequate care include insufficient staffing and failure to pay vendors for various services.

"They allegedly failed to repair washing machines and dryers, water heaters, air conditioners and a leaking roof," Crosby said.

Because of continuous food shortages in the nursing homes, employees -- whose own paychecks were bouncing -- spent their money to purchase bread, milk and other groceries, Crosby said. Meanwhile, the Housers purchased Mercedes-Benz automobiles and a $1.3 million house in Atlanta, according to the indictment.

The Georgia Department of Human Resources closed all three homes in 2007 after giving the nursing homes chances to correct problems.

Additionally, George Houser allegedly failed to pay at least $806,000 to the IRS for his payroll taxes, according to the indictment. He is also charged with failing to file personal income tax returns for 2004 and 2005.