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Glenn D. MosesGlenn D. Moses (Courtesy photo)

South Florida attorneys helped organize the sale of a Hollywood nursing home that owed millions after a Medicare fraud scheme, achieving an uncommon result in a bankruptcy case: the full repayment of unsecured creditors.

The Hollywood Hills Rehabilitation Center LLC’s former CEO, Karen Kallen-Zury, was sentenced to 25 years in prison and ordered to pay $40 million for running the scheme. The company had more than $20 million in debt when it filed for Chapter 11 protection in April 2015.

Because of civil and criminal forfeiture proceedings against Kallen-Zury, Hollywood Hills’ assets were frozen, putting an obstacle in the road to recovery for creditors. But the government cleared the way for distribution by agreeing to release the assets during the bankruptcy.

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