Chronic Neglect Settlement

Detroit News reported that six Detroit nursing homes and their ownership companies are paying $4.5 million after authorities accused them of neglecting their residents, including letting them lie in their own filth.

The two ownership companies, Villa Financial Services LLC and Villa Olympia Investment LLC, will pay more than $3.4 million to the U.S government, plus more than $1 million to the state of Michigan.

“Chronic neglect of nursing home residents is unacceptable, yet sadly all too common,” Michigan Attorney Dana Nessel said. “American taxpayers contribute billions every year to ensure quality care for our most vulnerable. When that care is not provided, my office will continue to work alongside our federal partners to hold those responsible accountable.”

This settlement comes after state and federal authorities investigated allegations made by Villa employees, who said they “personally witnessed mistreatment of residents.” Employees say that the nursing home had failed to prevent and treat residents’ infections and pressure ulcers, failed to prevent falls, and failed to “provide for residents’ toileting needs, so that residents sat or lay in soiled beds and clothes for extended periods.”

The companies also allegedly failed to provide the facilities with adequate staffing levels.

Villa has denied these allegations and did not respond immediately to requests for comments.

As part of the settlement, Villa will also enter into a five-year-quality-of-care corporate integrity agreement with the U.S. Department of Health and Human Services’ Office of Inspector General. This agreement will require Villa to hire an independent quality monitor to assess its care delivery and ensure it can effectively prevent, identify, and address patient care issues.

The following facilities are involved in the suit: The Ambassador in Detroit, Father Murray in Center Line, Imperial in Dearborn Heights, Regency in Taylor, St. Joseph’s in Hamtramck, and Westland in Westland. Nessel’s Health Care Fraud Division handled the case in Collaboration with the U.S. Attorney’s Office for the Eastern District of Michigan and the DOJ’s Commercial Litigation Branch- Fraud Section.

The U.S. Attorney’s Office stated that the case was part of the DOJ’s 2025 National Health Care Fraud Enforcement Action, a nationwide law enforcement actions that “resulted in criminal charges against 324 defendants for their alleged participation in health care fraud and illegal drug diversion schemes that involved the submission of over $14.6 billion in intended loss and over 15 million pills of illegally diverted controlled substances.”

Federal prosecutors said that the United States has “seized” over $245 million in cash, luxury vehicles, and other various assets that are part of this takedown.