Philip Esformes Biography
Philip Esformes is a former healthcare executive who gained notoriety for being involved in one of the largest Medicare fraud schemes in U.S. history. Esformes, a Florida-based businessman, operated a network of more than 30 skilled nursing and assisted living facilities. Between 2007 and 2016, he orchestrated a massive healthcare fraud scheme that involved paying kickbacks and bribes to physicians and administrators to admit patients who did not need care into his facilities. He then billed Medicare and Medicaid for services that were either unnecessary or not provided at all.
In 2019, after a lengthy trial, Esformes was convicted on multiple charges, including conspiracy to commit healthcare fraud, money laundering, and paying kickbacks. The fraud amounted to over $1.3 billion in fraudulent claims, making it one of the largest cases prosecuted by the U.S. Department of Justice. He was sentenced to 20 years in prison and ordered to forfeit millions of dollars in assets.
In December 2020, Esformes’ prison sentence was commuted by then-President Donald Trump, although his conviction and financial penalties remained intact. Despite his release, legal battles continued as the U.S. Department of Justice sought to retry him on unresolved charges.
Philip Esformes Age
Philip Esformes was born in 1968. As of 2024, this would make him 56 years old​.
Philip Esformes Hometown
Philip Esformes is from Miami Beach, Florida.
Philip Esformes Career
Philip Esformes began his career in the healthcare industry, becoming a prominent figure in nursing home and assisted living facility operations. He co-owned and operated a network of more than 30 skilled nursing facilities (SNFs) and assisted living facilities (ALFs) across Illinois, Missouri, and Florida. His business primarily catered to elderly and vulnerable patients, with a focus on providing long-term care services. These facilities, which he managed over the span of two decades, contributed to his substantial wealth and reputation in the healthcare industry.
Esformes’ business model was centered on maximizing occupancy in his facilities, and he used aggressive strategies to expand his network. He owned several notable facilities in the Miami area, including hospitals and care centers that focused on both skilled nursing and assisted living services. His involvement in the industry allowed him to gain significant influence, not only in Florida but also in the broader healthcare management space.
The $1.3 Billion Medicare and Medicaid Fraud Scheme
Philip Esformes became infamous for orchestrating one of the largest healthcare fraud schemes in U.S. history, valued at $1.3 billion. From 2007 to 2016, Esformes exploited his vast network of skilled nursing and assisted living facilities to carry out fraudulent billing practices. His scheme revolved around paying kickbacks and bribes to medical professionals and administrators in exchange for patient referrals, many of whom did not require the medical services they were billed for. These unnecessary services were then billed to Medicare and Medicaid at inflated prices​.
Esformes’ fraud was not only a financial crime but also a case of significant patient exploitation. Vulnerable patients, including the elderly and individuals suffering from mental health issues, were often subjected to inadequate or even harmful care in his facilities. His facilities were found to have poor conditions, and there were instances where patients were kept unnecessarily to inflate bills. The U.S. Department of Justice (DOJ) described Esformes as “driven by almost unbounded greed,” noting that his fraudulent activities resulted in a massive financial burden on the healthcare system.
Bribery of Medical Professionals and Regulators
To carry out his scheme, Esformes relied heavily on bribing doctors and healthcare administrators. In exchange for these bribes, medical professionals would refer patients to his facilities, which allowed him to bill for services that were either unnecessary or never provided. Additionally, Esformes bribed healthcare regulators to avoid scrutiny. For example, he paid bribes to a Florida state regulator to receive advance notice of surprise inspections at his facilities, allowing him to temporarily address poor conditions before inspections took place​.
Beyond healthcare bribes, Esformes also extended his corruption into the education system. He paid more than $300,000 in bribes to the University of Pennsylvania’s basketball coach to facilitate the admission of his son into the university as a recruited athlete, despite his son not being a competitive basketball player. This instance was revealed during Esformes’ trial and added another layer of complexity to his criminal activities.
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Conviction and Sentencing
In 2016, federal authorities arrested Esformes, and after a lengthy trial, he was convicted in 2019 of multiple charges, including conspiracy to commit healthcare fraud, money laundering, paying and receiving kickbacks, and obstruction of justice. His trial lasted eight weeks, and he was found guilty on 20 counts related to the fraud. U.S. District Judge Robert N. Scola sentenced him to 20 years in prison, describing the case as a “calculated” scheme that harmed patients and defrauded the government​.
In addition to his prison sentence, Esformes was ordered to forfeit $38.7 million in assets and pay $5.5 million in restitution. This financial penalty reflected the scale of his fraudulent activities and served as part of his punishment for orchestrating the largest healthcare fraud scheme ever charged by the DOJ​
Commutation by President Donald Trump
In December 2020, outgoing President Donald Trump commuted Esformes’ 20-year prison sentence, allowing him to be released after serving less than five years. The commutation was part of a series of controversial clemency orders issued by Trump before leaving office. Although Esformes’ prison sentence was reduced, his conviction and financial penalties remained intact. Trump’s decision sparked widespread criticism, with many viewing it as part of a pattern of clemency for wealthy or well-connected individuals.
Legal experts expressed concerns about the integrity of the justice system, particularly given the magnitude of Esformes’ crimes and the financial harm caused to the U.S. healthcare system. While Esformes was freed from prison, his legal battles continued, as he sought to overturn his conviction through various appeals, all of which were denied​
Ongoing Legal Challenges and Future Outlook
Despite the commutation of his sentence, Esformes remains entangled in legal battles. In 2023, the U.S. Supreme Court denied his request for a hearing to completely throw out his conviction and financial penalties. This means that while Esformes is no longer in prison, he is still required to pay the substantial financial penalties imposed during his sentencing​.
Additionally, the Department of Justice has sought to retry Esformes on several charges for which the jury could not reach a verdict during his 2019 trial. These charges include conspiracy to commit healthcare and wire fraud, which remain unresolved. Legal analysts suggest that these proceedings could continue for years, as Esformes and his legal team fight to reduce the remaining charges and penalties.
Philip Esformes Wife and Children
Philip Esformes is known to have been married to Sherri Esformes, although there is little public information about their current marital status. The couple has three children, one of whom, Morris Esformes, gained attention due to his father’s involvement in a college admissions bribery scandal.
Philip Esformes Net Worth
Philip Esformes’ net worth before his legal troubles was estimated to be in the hundreds of millions of dollars, largely accumulated through his ownership of a network of more than 30 skilled nursing and assisted living facilities. However, following his conviction for orchestrating a $1.3 billion Medicare and Medicaid fraud scheme, he was ordered to forfeit $38.7 million and pay $5.5 million in restitution. Given his legal penalties, fines, and asset forfeitures, his current net worth has likely been significantly reduced.Â
FAQs
Who is Philip Esformes?
Philip Esformes is a former healthcare executive who owned a network of nursing homes and assisted living facilities, primarily in Florida, and was convicted for orchestrating a massive healthcare fraud scheme.
What was Philip Esformes convicted of?
He was convicted of healthcare fraud, money laundering, and paying kickbacks in a $1.3 billion Medicare and Medicaid fraud case.
When was Philip Esformes convicted?
He was convicted in April 2019 after an eight-week trial.
What was his sentence?
Esformes was sentenced to 20 years in prison and ordered to pay over $44 million in fines and restitution.
Was Philip Esformes released from prison?
His prison sentence was commuted by President Donald Trump in December 2020, although his financial penalties remained intact.
What was the scale of the fraud he committed?
The fraud involved over $1.3 billion in false claims to Medicare and Medicaid.
How did Esformes commit healthcare fraud?
Esformes bribed doctors to admit patients to his facilities, then billed for unnecessary or nonexistent medical services.
What happened to his business operations?
His facilities were implicated in the fraud, and many were shut down or sold.
Where is Philip Esformes now?
He remains out of prison but continues to deal with ongoing legal proceedings related to his conviction.
