Former nursing home head pleads guilty to millions in bank fraud

An Ohio businessman pleaded guilty Tuesday in federal court in Pittsburgh to writing checks for more than $118 million on accounts with insufficient funds over a three-day period in May.

Harold Sosna, 67, who was previously the president of Premier Healthcare Management Company, will be sentenced by U.S. District Judge Marilyn J. Horan on Feb. 18 on a single count of bank fraud.

According to the U.S. Attorney’s office, Sosna’s crime led to a loss of $59 million by S&T Bank, which is headquartered in Indiana County.

Sosna was charged with running an extensive check kiting scheme via criminal information on Sept. 30.

“He tried to game the system by floating money around to make it look like his accounts had millions of dollars in them,” said FBI Pittsburgh Special Agent in Charge Michael Christman, in a statement. “Instead, he committed large-scale fraud.”

According to the criminal information, Sosna wrote 203 checks, with a combined value of more than $118 million, between May 15 and May 18 on accounts under his control and associated with Premier and its subsidiaries at S&T Bank and First Financial Bank.

“This was done to manipulate the numerical balance in the accounts and thereby create the false and fraudulent appearance that the defendant had sufficient legitimate available funds in various accounts, and to trick the banks into honoring checks drawn against accounts with insufficient funds,” the information said.

Premier was founded in 1998 and operates nine nursing care facilities in southern and central Ohio.

Herbert Haas, the attorney who represented Sosna, said his client expanded too quickly.

“Things kind of just went off the rails. He mortgaged everything he could to keep things going.”

Sosna and Premier are the subject of multiple court cases in Hamilton County, Ohio, as well, and the nursing homes have been placed in receivership.

Haas said his client has been working closely with the receivers to ensure the facilities stay open, and the residents aren’t forced out.

“He’s working with them to preserve the equity and create some liquidity to pay back some of the debts that are part of the lawsuits.”