BOSTON, MA — The former chief executive of a historic Boston nursing home pleaded guilty on February 27, 2026, to two federal counts of intentionally misapplying funds from a federally funded healthcare program, according to multiple reports from MedBound Times and the Bay State Banner.
Tony Francis, 59, of Needham, Massachusetts, admitted before U.S. District Court Judge Indira Talwani that he diverted nearly $160,000 from a COVID-19 Economic Injury Disaster Loan — money intended to support worker payroll at the Edgar P. Benjamin Healthcare Center (EPBHC) — into a personal real estate investment, according to court records reported by MedBound Times. Francis also arranged for the facility to pay off a $100,000 personal loan without obtaining approval from the nonprofit's board of directors.
The EPBHC, located in Boston's Mission Hill neighborhood, holds the distinction of being the only Black-founded, owned, and operated skilled nursing facility in New England, as reported by CBS Boston. The nearly 100-year-old institution serves some of the region's most vulnerable communities and was caring for 76 patients at the time the financial irregularities came to light.
The Scope of Alleged Misconduct
The guilty plea represents only a fraction of the alleged financial misconduct at the facility. Between 2022 and 2024, Francis also transferred funds from an EPBHC line of credit into his personal checking account to cover mortgage payments and credit card expenses, according to MedBound Times.
A separate civil lawsuit filed in Suffolk Superior Court by court-appointed receiver Joseph Feaster paints an even broader picture of financial mismanagement. As reported by CBS Boston, the March 2025 lawsuit accuses Francis and two other former employees of mishandling more than $3 million in state and federal funds. Feaster alleged that facility money was spent on first-class European travel, designer suits, spa treatments, and other personal luxuries, according to the CBS Boston report.
An investigation by Boston 25 News revealed that Francis's salary ballooned from $156,181 in 2015 to $628,592 by 2021, making him one of the highest-compensated nonprofit nursing home administrators in the state. His total annual compensation reportedly exceeded $930,000. Meanwhile, as reported by the Bay State Banner, residents at the facility sometimes went without basic medical supplies such as colostomy bags, and staff member Mitish Mahulkar, a 12-year occupational therapist, reported that payroll checks bounced due to insufficient funds, according to CBS Boston.
The financial turmoil ultimately forced the facility into court-ordered receivership in April 2024. At the time, the nursing home had accumulated $772,000 in unpaid bills, six years of unfiled tax returns, and outstanding IRS demands, according to Boston 25 News. The facility's revenue stood at approximately $11 million — the majority from Medicaid — while liabilities had reached $6.5 million.
Under the plea agreement, prosecutors agreed to recommend a sentence at the lower end of federal guidelines along with two years of probation and approximately $44,000 in restitution, according to the Bay State Banner. Francis has reportedly repaid most of the misappropriated funds. Sentencing is scheduled for May 20, 2026, with the charges carrying potential penalties of up to 10 years imprisonment, three years of supervised release, and fines up to $250,000.
CMS Inspection History
While the Edgar P. Benjamin Healthcare Center is not currently rated in the CMS five-star system due to its receivership status, the case raises important questions about oversight of nonprofit skilled nursing facilities. Federal regulations require that funds received by nursing homes participating in Medicare and Medicaid programs be used for the care and benefit of residents.
For context, facilities operating under stable management and proper financial stewardship can achieve strong regulatory records. Rivercrest Long Term Care in West Concord, Massachusetts — another nonprofit facility in the state — currently holds a 5-out-of-5 overall CMS rating with top marks in both health inspections and staffing, according to CMS data. Rivercrest's 151-bed facility has accumulated just 29 deficiencies across nine inspections, with its most recent survey in September 2023 citing only minor issues related to drug labeling and storage, food procurement standards, and medical records management — all at the lowest severity level (D). This standard of regulatory compliance illustrates what proper governance and financial management can sustain at a nonprofit nursing facility.
The contrast underscores how financial misconduct at the executive level can destabilize even historically significant institutions and ultimately threaten the quality of care delivered to residents.
Ownership & Operations
The Edgar P. Benjamin Healthcare Center has operated as a nonprofit institution for approximately a century. The facility's nonprofit status meant that public and government funds were entrusted to its leadership specifically for the purpose of resident care and operational needs. Federal law imposes strict fiduciary obligations on administrators of facilities receiving Medicare and Medicaid funding.
The appointment of receiver Joseph Feaster in April 2024 was intended to stabilize operations and untangle what he described to the Massachusetts Attorney General's Office as volumes of financial irregularities, according to Boston 25 News. The receivership process aims to ensure continuity of care for current residents while the facility's financial and legal matters are resolved.
Resources for Families
Families with loved ones in Massachusetts nursing homes who have concerns about care quality or facility management can contact the following resources:
- Massachusetts Long-Term Care Ombudsman Program: 1-800-243-4636 — Ombudsman advocates investigate complaints and work to resolve issues on behalf of nursing home residents. - National Elder Care Locator Hotline: 1-800-677-1116 — A nationwide resource connecting families with local services and reporting options. - Long-Term Care Ombudsman Resource Center: ltcombudsman.org — Provides information on residents' rights and how to file formal complaints.
Residents and family members are encouraged to document concerns in writing and request copies of the most recent state inspection reports, which are public records available through the facility or through the CMS Care Compare website.
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