Nursing Home Finds Suspicious Billing from Top Michigan Democrat

July 13, 2022

Lansing, Mich., July 13, 2022 – A top Michigan Democratic Party official is under fire after a west Michigan nursing home executive accused the official of suspicious billing practices. Joe LeBlanc, chief executive of an assisted living facility, has come forward highlighting the questionable billing practices of Traci Kornak, a licensed attorney and treasurer for the Michigan Democratic Party, citing “inappropriate and unauthorized” invoicing, Charlie LeDuff writes:

“A Grand Rapids nursing home is accusing a powerful Michigan attorney of “inappropriate and unauthorized” invoicing for services for an elderly, brain-damaged woman over whom she holds power of attorney.

Traci Kornak is the treasurer of the Michigan Democratic Party, and her political connections intimidated the nursing home for months. But now the operator is speaking out about what he sees as an elaborate maneuver to improperly bill an insurance company.

‘What would you call it?’ says Joe LeBlanc, chief executive of The Village of Heather Hills, an assisted living facility that is home to Kornak’s client. ‘Kornak used our tax ID number. She used someone else’s billing system. She told the insurance company that her handpicked caregiver was our employee when she wasn’t.’”

LeBlanc cites the scheme was carried out through letters to State Farm, faulty insurance claims, and improper use of the organization’s tax ID number:

• Kornak claimed to the insurance company that an additional attendant was hired to care for the elderly woman.
• The additional attendant is reported as sharing the same address with Kornak
• Kornak reported to State Farm that the attendant worked for The Village of Heather Hills, and used the facility’s tax ID number on billing statements
• Kornak used log hour templates from a health care provider staffing agency to create a paper trail of billable hours for the attendant

According to LeBlanc, the reported attendant is not an employee of The Village of Heather Hills, and Kornak did not have permission to use the facility’s tax ID number.

Red flags were raised when State Farm sent a check for $23,401.05 to the facility:

“‘I asked Kornak what was the meaning of all this,’ LeBlanc says. ‘She asked me to just cash it, and then she said she’d pay us a little money for the trouble.’

An official from State Farm confirmed the check was returned by the nursing home.” 

But wait, there’s more:

The suspicious billing practices align with elder abuse activities as identified by Attorney General Dana Nessel’s Elder Abuse Task Force. However, it is unlikely that Nessel will investigate the insurance fraud by the top Michigan Democratic Party official, as she refused to investigate Governor Whitmer’s dangerous handling of nursing homes during the pandemic. 

In her capacity as treasurer for the Michigan Democratic Party, Kornak failed to itemize contributions, and the Federal Elections Commission fined the party $19,000. Kornak also played a central role in Governor Whitmer’s laundering of $3.5 million to the Michigan Democratic Party, which has been used to support the reelection of Governor Whitmer and other Michigan Democrats. 

“Traci Kornak seemingly used her position as an attorney and top official in the Michigan Democratic Party to abuse a system meant to protect the most vulnerable residents of Michigan,” said Eric Ventimiglia, Executive Director for Michigan Rising Action. Ventimiglia continued, “Attorney General Dana Nessel has been open about her unwillingness to investigate wrongdoings in nursing facilities, allowing Governor Whitmer and Traci Kornak to operate without scrutiny.”