Nursing Home Chain Exec Sentenced for $5 Million of Kickback Schemes

Medical Facilities of America Inc.’s (MFA) former director of corporate maintenance and renovations was sentenced last week to 63 months in prison after pleading guilty to four felony charges involving fraud earlier this year, according to the Department of Justice

In addition to his prison sentence, John Henderson of Virginia will pay $698,088 in restitution for his involvement in two separate financial conspiracies involving the steering of contracts for repair, maintenance and renovation in MFA facilities dating as far back as 1998. He is the fifth person involved in the MFA scheme to plead guilty. 

“Through this kickback scheme, Henderson and his co-conspirators deprived MFA of competitive pricing to its financial detriment,” said Acting Assistant Attorney General Joseph Wayland in charge of the Antitrust Division. “Today’s sentencing demonstrates the division’s commitment to holding executives accountable for disrupting the competitive bidding process for service contracts.”


As overseer of the maintenance and renovation contract bidding process, Henderson received more than $560,000 in kickbacks from vendors for steering business their way and created fake competing bidders in attempts to make the amount of competition appear larger. 

Henderson’s charges include two counts of conspiracy to commit mail and honest services fraud in the kickback schemes and two counts of failing to include the kickbacks and other income he received on his deferral tax income for 2005 and 2006. 

A total of $5 million in steered MFA contracts were made under Henderson’s direction.


Written by Erin Hegarty

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