Trio Busted for Misleading HUD to Get Refinancing for 3 Okla. Nursing Homes

Three men have agreed to collectively pay more than $5 million after being busted for misleading the Department of Housing and Urban Development (HUD) in order to get HUD-insured mortgage refinancing for three Oklahoma nursing homes, says the Department of Justice. 

Philip Green and Jerry Max Jiles, the owners of Bartlesville Health Care Center, Inc., and Virgil M. Harry, Jr., the former president of the Harry Mortgage Company, will pay $5.325 million to resolve allegations that they knowingly made false statements in applications to HUD to get mortgage refinancing for the three nursing homes.

The trio allegedly made false statements regarding the eligible existing indebtedness of those nursing homes—the Bartlesville facility, the Mannford Health Care Center, and the Owasso Nursing Care Center Inc.—so they could get cash from the HUD-insured mortgage refinancing, in violation of HUD rules and requirements. 


In 2008, the mortgage loan for the Bartlesville home defaulted and the facility closed, resulting in a loss to HUD through the $3.2 million mortgage insurance claim. 

Jiles and Green each agreed to pay $2.625 million, while Harry was ordered to pay $75,000. 

Written by Alyssa Gerace