BRIDGETON, NJ — South Jersey Extended Care, a 167-bed nursing facility in Bridgeton, and its owner Mordechay Weisz have been officially suspended from the Medicaid program effective March 13, 2026, after a sweeping state investigation revealed extensive financial fraud, chronic understaffing, and dangerous conditions for residents, according to the Center for Medicare Advocacy.
The suspension was ordered by Acting New Jersey State Comptroller Kevin Walsh, who has also barred all related parties and affiliates connected to the facility from receiving Medicaid funds, according to the Center for Medicare Advocacy. The action represents one of the most aggressive enforcement measures taken against a nursing home operator in New Jersey's history.
What the Investigation Found
A December 2024 investigative report from the New Jersey Office of the State Comptroller revealed what investigators described as "a pattern of waste and abuse of public funds, financial mismanagement, disregard of federal and state oversight requirements, and substandard care" during a five-year review period spanning April 2018 through March 2023, according to the Comptroller's office.
At the center of the scheme, according to the investigation, was a complex corporate arrangement designed to keep individuals previously barred from nursing home ownership in other states in effective control of the facility. The Comptroller's report found that Michael Konig, who had been prohibited from owning nursing homes in both Massachusetts and Connecticut due to poor quality care, transferred ownership of the facility to a relative, Mark Weisz, around 1997. Weisz served as a straw owner while Konig and his brother-in-law Steven Krausman maintained full operational control through a management company, according to the report.
The investigation determined that Krausman and Konig funneled money through inflated contracts with businesses they owned and controlled, spending approximately $38.9 million on these self-dealing arrangements over the review period, as documented in the Comptroller's report. During that same timeframe, the facility collected $35.6 million from the Medicaid program — meaning the operators were spending more on contracts with their own companies than the facility was receiving in public funds.
Dangerous Staffing Failures
Perhaps the most alarming finding involved the facility's chronic failure to provide adequate staffing. According to the Comptroller's investigation, during a 75-day period examined by investigators, South Jersey Extended Care failed to meet minimum staffing requirements on every single day.
The report detailed one particularly stark example: on July 4, 2021, the facility housed 106 residents but had only four certified nursing assistants covering the day shift when 13 were required, and just two direct care staff on the overnight shift when eight were needed. For a two-hour window between 11:00 p.m. and midnight, there were zero direct care staff on duty, according to the report.
Beyond raw numbers, the investigation found the facility employed unqualified and unlicensed direct care staff and repeatedly failed to fill critical roles including a licensed Director of Nursing and a licensed social worker, according to the Comptroller's office. Medical records were found to be disorganized and missing essential documents such as resident care plans, medication administration records, and documentation of basic daily living assistance like help with eating, walking, and toileting.
CMS Inspection History
Federal inspection data from the Centers for Medicare & Medicaid Services paints a picture consistent with the state's findings. South Jersey Extended Care holds an overall CMS rating of just 2 out of 5 stars, with a health inspection rating of 1 out of 5 — the lowest possible score. The facility has accumulated 77 deficiencies across 14 inspections on its federal record.
The Comptroller's report noted that deficiency counts at the facility ran more than double the New Jersey state average over the three most recent inspection cycles, with documented issues including neglect, abuse, unsanitary conditions, and inadequate medical care, according to the investigation.
The most recent CMS inspection, conducted in June 2024, cited the facility for multiple violations including failure to honor residents' rights to a dignified existence and self-determination, failure to ensure the security of residents' personal funds, and failure to provide a safe, clean, and homelike environment. The financial security deficiency was classified at severity level F, indicating actual harm or immediate jeopardy to residents — a finding that takes on added weight given the fraud allegations.
Notably, the facility's CMS quality measures rating stands at 5 out of 5 stars, a discrepancy that highlights a well-known limitation in the federal rating system: quality measure scores are largely self-reported by facilities and can diverge significantly from conditions documented during on-site inspections.
Ownership & Operations
South Jersey Extended Care is registered with CMS as a for-profit limited liability company, a corporate structure the Comptroller's office specifically flagged as problematic. The investigation recommended that New Jersey conduct a comprehensive analysis of ownership, management, and control structures used by for-profit nursing homes and adjust state regulations accordingly.
The Comptroller's office issued a series of sweeping reform recommendations, including measures to prevent owners from delegating management control to unvetted companies, establishing strict criteria for withdrawing equity from nursing facilities, requiring state approval of all property leases and ownership transfers, and implementing active monitoring of facilities showing signs of financial distress, according to the report.
The suspension of South Jersey Extended Care was paired with a separate action against Sterling Manor Nursing Center, another New Jersey facility connected to the same ownership group, which received a federal fine exceeding $1 million in 2024, according to the Center for Medicare Advocacy.
Resources for Families
Families with loved ones at South Jersey Extended Care or any New Jersey nursing facility who have concerns about care quality or resident safety can contact the following resources:
- New Jersey Long-Term Care Ombudsman: 1-877-582-6995 — Ombudsman advocates work to resolve complaints and protect the rights of nursing home residents. - National Long-Term Care Ombudsman Resource Center: 1-800-677-1116 - Long-Term Care Ombudsman Program website: [ltcombudsman.org](https://ltcombudsman.org)
Federal law requires nursing facilities participating in Medicare and Medicaid to meet minimum standards of care. Residents and families have the right to file complaints with their state survey agency, and all complaints are investigated. Retaliation against residents or family members who file complaints is prohibited under federal regulations.