Bio Care Paul Montano Will Not Face Criminal Charges

After an investigation that has lasted over a year, the District Attorney’s office has decided to not pursue charges against Bio Care owner Paul Montano

Montano and his wife ran Bio Care, a business that was supposed to handle bodies donated for scientific research, then cremate the remains and give the ashes to the decedent’s family. Last March, body parts, including heads and severed limbs were discovered in medical waste bins in Kansas by waste disposer Stericyle. Montano was arrested and charged with fraud, but those charges were later dropped pending further investigation.

Our office represents the family of Johnny Frausto, whose dying wish was to donate his body for scientific research in an effort to advance a possible cure for pancreatic cancer. Mr. Frausto’s torso was found in a walk-in freezer at the Bio Care office. The New Mexico Office of the Medical Investigator identified Mr. Frausto’s torso through the identification number on a pacemaker. Mr. Frausto’s head, arms and legs, which had all been crudely severed from the body, were found in an unrefrigerated storage container.

Shortly after we filed a civil lawsuit on behalf of the Frausto family, Montano filed for bankruptcy, stopping the civil case from moving forward. Without any assets or insurance to cover a judgment, the victims would not receive any compensation, even if a jury rendered a verdict against Montano. Now that criminal charges will not be pursued, it looks like the Montano’s are going to get away with their egregious behavior.

Cathedral Rock Nursing Home Corporation Pleads Guilty to Felony Medicaid Fraud

Cathedral Rock Corp., which operates nursing homes in Texas, Illinois, Missouri and New Mexico, will pay the United States $1 million in criminal fines and penalties, and $628,000 in a civil settlement, for operating five nursing homes in the St. Louis area that were understaffed and provided substandard care. 

The nursing homes admitted in their plea agreements that:

  • At various times staffing at the nursing homes was not sufficient to provide adequate nursing care
  • At various times wound care was not provided at the nursing home
  • residents often did not receive their medication as prescribed
  • medical records were falsified and a "charting party" occurred at SpringPlace to fill in medical records so that it appeared that all medication had been properly given, regardless of whether the medication was actually given or not
  • the nursing homes submitted fraudulent claims to Medicare and Missouri Medicaid for services that were not provided or were worthless  

The guilty plea is part of a settlement of criminal charges and a civil lawsuit that was originally filed by two whistle-blower employees in 2003. The ensuing investigation found that several residents were suffering from dehydration, weight loss, and preventable bed sores that led to amputations. One resident died after falling from a window.Other claims included falsification of residents’ medical records, failure to administer necessary medications. 

Missouri Attorney General Chris Koster said Cathedral Rock engaged in billing practices designed to defraud Medicare and Missouri Medicaid by submitting false cost reports to Medicare and Medicaid for services that were not provided. In addition, he said that substandard care was provided that contributed to serious injury or death of residents.

"This kind of fraudulent conduct is not to be tolerated,” Koster said. “To defraud the taxpayers and then offer grossly substandard care to those who cannot care for themselves is unconscionable.”

The Texas-based Corporation, which was founded by C. Kent Harrington, the current owner and CEO, advertises itself as “a company based on Integrity, Service and Teamwork.” The company’s website states, “our management team strives to provide quality care for our Residents and an uplifting, positive environment in which to work.  Our Residents and their quality of life come first. Close behind is the company's second priority - our staff and true fulfillment in their jobs by helping those Residents have the best care possible.” 

The Harvey Law Firm is currently engaged in litigation against Cathedral Rock for its operation of a New Mexico nursing home known as Santa Fe Nursing Operations/Santa Fe Care Center.