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Tax Evasion and Medicaid/Medicare Fraud

Published on May 27th, 2010

Karen Mason was the chief executive officer of Havenwood Nursing and Rehabilitation Center who has been sentenced to two years in prison for tax evasion. Federal prosecutors say 57-year-old Karen Mason, previously known as Karen Mueller, admitted taking more than $1 million from the Havenwood Nursing and Rehabilitation Center from 2002 through 2005 and not reporting the money as income.

The U.S. attorney’s office says she used the money for jewelry, home furnishings, cars, entertainment, travel and other expenses, including more than $30,000 for a wedding and honeymoon for one of her children. It says she underpaid her federal income taxes by more than $360,000.

Joe Pioletti
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