Please note that the Hollywood Hills nursing home has closed. The death total is now 12. That appears to be 12 more than any other facility in Florida!
The relationship between the ownership of this Florida facility and the Chicago nursing home operators is very troubling. This tragedy should never have happened – but it did because the bureaucrats assigned to keep Us SAFE are easily paid off.
The Nursing home bit-coin.
In Money laundering 101 we learned that using a currency other than the coin of the realm was preferred. Government officials, accountants, lawyers, and other similar groups of people understand that a dollars is worth x euros, y franks, etc and these values can be ascertained by accessing the WALL STREET JOURNAL. Indeed, the picture of George Washington and Queen Elizabeth has no sex appeal and too many pictures have just too much bulk. Worse yet the coin of the realm was minted in denominations that accountant and lawyers understood.
Thus, using ‘lawn care’ equipment, Korean pears, or similar commodities opened the door to a much more efficient operation and less chance that revenuers would be wiser. Unfortunately, commodities and their documentation are subject to various regulations and the process all too often runs afoul of extraneous statutes. “lawn care” equipment may for instance be subject to VAT.
The nursing home industry has a more satisfactory approach. As we noted in the Mary Sykes case and several others “payments” are made in two currencies, to wit: tangibles and intangibles.
The F estate (out of Florida) appears to be a clear example. An individual with a similar name to the beneficiary of the Nursing home bit coin dies with a substantial estate. The payee is provided the relevant information and as she is an attorney she arranges for the opening of the Estate. As part of the opening of the Estate she becomes the primary heir. The F Estate was reputed be a two million dollar estate and therefore even discovery by the Attorney General of Florida was not a problem. The AG did discover the fraud, but a 50% settlement satisfied everyone, and the bit coin recipient walked away with a cool million dollars totally free of State and Federal Taxes. She was an heir!
Some of the bitcoin transactions are more contingent. In the 1960-1970’s (prior to Greylord) receiverships (particularly in foreclosures) were an easy dollar. All the transferee had to do was collect the rents from the real estate under receivership and with a little imagination pocket substantial change. The owner of the premises was going to have his/her equity wiped out anyway, so as a practical matter there was no complaint. Unfortunately, the conduit used was discovered by the Political corrupt bureau of the Department of the Treasury and the Banking authorities and the scheme had to be shelved. The Probate Court, affectionally known as the cesspool, was open for improvement. Previously, outright theft was the norm; however, with Justice Department lawyers wandering through the portals of Circuit Court an annual purging of records by mysterious fire was no longer feasible and subtlety had to be substituted. This meant that more lawyers had to be added to the scheme, and they had to be paid. Payment by appointment as guardians, guardians ad litem, et al became the norm. These lawyers familiar with all the facts meant the judges with little or no judicial skill could be recruited to rubber stamp Court orders covering the redistribution of wealth. (NB. Recruiting a judge was quite simple. Many could be paid by the Political people engaging relatives of the judge for little or no work jobs or repaying a loan that the judge owed. The usual procedure was totally foolproof. Judge X would go to the Bank of his choice – or a bank recruited for the task – and apply for a loan in the amount of the remuneration agreed. The judge would receive the cash, and the beneficiary of the Judge’s services would repay the loan at an agreed rate. The duration of the loan would guaranty the judge’s compliance. Again, the culpability for the payment of taxes would not be apparent to the casual lawyer, accountant, or tax auditor)
The foregoing money laundering events were reserved for the ‘blue collar’ members of the health care fraud industry and similar ventures. The potential for discovery was slim, but there was and is such a probability. Worse yet, outsiders might learn of the scenario and some might even ‘leak’ the scheme to Law enforcement authority. Law enforcement nine times out of ten would shy from the investigation for several reasons, to wit: Their supervisors were actively receiving remuneration from many of the same sources, and these transactions were long, hard, complicated, difficult to prove, and could place an individual law enforcement person in jeopardy. Even an incompetent judge, lawyer, or member of the Political or Judicial elite is a formattable opponent. If you need an example – Jerome Larkin, the administrator of the Illinois Attorney Registration and Disciplinary commission well knows that his assaults on the Bill of Rights is going to ‘bite him.’ He does not care as he also knows that even when he has openly and notoriously violated the law his felonies will ignored by the JUDICIAL ELITE. Why? He has the ‘dirt’ on every miscreant involved in the scheme and could bring down a large cadre of criminals drawing public pensions. (Even though the State of Illinois is on the verge of Bankruptcy, the Department of Revenue (and the Illinois Attorney General) are disinterested in collecting the taxes, interest and penalties that Larkin owes due to his participation in the Elder Cleansing conspiracy). However, the Internal Revenue Service does from time to time focus on a criminal wearing a political mantel and does collect some of the taxes due.
Nursing home bitcoin criminals of high rank cannot afford to be apprehended by law enforcement with regard to their theft of MEDICARE funds etc. Philip Esformes – if he is unable to reach the JUDGE will spend the rest of his life in prison. The thefts by the cadre of nursing home operators have a rank equal to or superior to Esformes make Esformes crimes ‘small potatoes.’ High dollar volume thefts of government funds (as well as private funds) generate not only tax liability, but, a hue and cry when the theft is localized. The 700% health care fraud surcharge is an academic statement that even though true and easily demonstrated is so enormous and so nefarious/pernious/evil that even for the knowledgeable it is difficult to get around upon. How could Philip Esformes or Bernie Madoff stolen a Billion dollars? The fact is they did! In most of our lifetimes we will not transaction directly or directly a half of billion dollars of business under the best of circumstances.
Stealing a money to drop it into the ocean is not an incentive filled endeavor. However, being able to purchase a vehicle for a million dollars, a home for x million dollars etc. does provide an incentive to some. If you have enough cash to cross palms of the Political elite with, you can purchase a night at the White House ****. Accumulating coin of the realm in Banks, etc calls attention to yourself. There has to be way to purchase EQUITY without calling attention to yourself and to have it reasonably liquid. The Bitcoin Nursing home operators have indeed developed such a scam. A single nursing home in the present climate generates in many case $10,000 per patient per month pure profit. With creative accounting, a bunch of Enron types corporations, and enough clout to get inspectors and other regulators at bay about ½ of the per patient profit can be obfuscated. Smart lawyers and accountants thereupon can mask the profit further with depreciation allowances, reserves, consultants fees, etc. The purchase of a new piece of equipment has enormous potential for masking profits. (The masking has been discussed previously so will not repeated herein). The net effect is that the unmasked profits have to be distributed is they have any meaning.
As many of the nursing home operations are multilayer investment vehicles and certain members of the public invited to INVEST, a bitcoin investment vehicle is developed. The nursing home is established by one of the OPERATORS. A well designed facility costing millions of dollars is proposed. Venture capitalists and certain controlled financial institutions are invited to do the financing. In addition, up front cash is solicited from certain designated members of the community. They in the past were investing in a “limited partnership” This group provided what some of us have labelled “seed money.” The limited partnership agreement provides for a sharing of the profits of the facility based upon percentage of investment. The cabal obviating the facility promises a particular percentage return for a particular number of years. This promise is sacrosanct and the promisor would sell his soul to devil rather than renege. Of course, the actual profit that would be earned for distribution by even a cursory compliance with the written word would be well in excess of the promises payout. However, the payout is made!
As the initial investors are guaranteed to be happy – who would not be happy with a 15% return on investment and the personal promise of a very substantial person to return the principle in about ten years. (rarely has this not be accomplished). Thus, there is room for excess investment. This excess investment is the nursing home bitcoin. In the early years and in some of the rebooted facilities the “initial investor” groups’ share had a bitcoin segment. Individual ‘nursing home beds’ were sold. Thus, the Hollywood Hills facility could sell `150 ‘nursing home beds.” The initial investors for a set price would receive a portion and people whose participation could not be disclosed were allocated the balance. All of the beds were designed a ‘fixed’ price. The nursing home cabal guaranteed the price.
The ’nursing home’ beds were the not coin of the realm cash to fuels the health care cabal and scandal. How do you reimburse a partner in a major law firm for paying off the loan of a jurist that he has just wired. (Let us reiterate with a hypothetical . Someone wishes to reach Judge MC in the MS case. MC is aware that her finances are being monitored by law enforcement. (The MS case is not the only questionable case that she has presided ). A lawyer, not related to the case, on behalf of one of the parties to the case has contacted Judge MC and a cash arrangement has been made. The Judge has arranged to go to the X Bank in Downtown Chicago to obtain a loan. A loan in an amount of Y dollars plus Z dollars has been arranged. (It is important that the Judge have some records of making payments – many auditors can actually read a bank statement). The aforesaid lawyer has to make the payment but does want a paper trail as to the transaction. He certainly does not want his part in the transaction to become known, nor does he want to disclose the transaction on his Federal Tax return. He certainly cannot afford to NOT disclose the transaction.
The nursing home bitcoin is an ideal vehicle. The money that lawyer advanced to the scheme is reimbursed in bitcoins. He receives for these funds a fixed number of nursing home beds. A little creative paperwork and few auditors would be able to unwind the transaction even if they watched it from the sidelines. However, when the lawyer desires to cash out – the cabal has made a market for the nursing home bitcoins and a purchase of his interest is arranged. The nursing home bit coin works as cash.
The nursing home bitcoin scenario has an international bent. With medicare and other health care funds so vulnerable to theft, the opportunity is available on an INTERNATIONAL scale. The indictment of Esformes took place in Miami. Here in Illinois the very same type of fraud is evident. The Seth Gillman transactions are quite relevant as are the “Ricky ***” transactions that he is becoming famous. (I understand that Arizona refused him a permit of operate a nursing home). The currency of the nursing home bitcoin is meager enough to be fungible world wide! – each unit has two beds. Each bitcoin earns a fixed amount that may or may not have a relationship to the actual earnings of the facility. (NB. It must be remembered that the actual earnings of the particular nursing home does not matter as it can and is adjusted. The nursing home contracts out its essential services – cleaning, management, patient care such as nursing, pharmaceuticals, transportation, utilities, janitorial *****. In addition, the treasury that maintains the bitcoins, has guaranteed the value and made a market.
The nursing home bitcoin is the subject for today because I understand a lawyer for a well know political firm bragged to a friend concerning his acquisitions of nursing home beds. People hearing the revelation put two and two together when my name was mentioned. I represented a lawyer before the Illinois Attorney Registration and Disciplinary commission and in some other related matters who actually had been paid for his services in the bitcoin currency. As I do not believe in coincidences *****.
The utility of the nursing home bit coin should be obvious.