We're learning new details tonight about the scathing report on what the state comptroller calls one of the worst nursing homes in new Jersey.

The operators of South Jersey Extended care are accused of running a massive and long running Medicaid scam.

An investigation revealed two operators were running the show from behind the scenes.

Even after being barred from operating nursing homes in other states.

But questions remain about the future of South Jersey extended care and a second home they owned in Maple Shade, including whether they'll shut down for good, leaving their 200 residents without a place to find care and support.

Senior correspondent Brenda Flanagan spoke to the state ombudsman and advocates about what happens next.

They profited on the despair of people who wanted better care but had no way to get it.

New Jersey's watchdog described appalling neglect of patients at the state's worst rated nursing home, South Jersey Extended Care in Bridgeton.

It's documented in a scathing new report alleging operators conspired to swindle 45 million in taxpayer dollars out of the system over five years with a misleading corporate set up.

That was the setup for their scam straw owner falsely pretending they weren't in control.

Keep it close in the family, inflate costs while extract extracting profits and provide poor quality care.

They exploited the poor, the sick, the elderly.

Acting Comptroller Kevin Walsh says the facility claim Mark white owned the place, but Stephen Krausman and Michael Konig actually controlled everything.

He explains they kept the facility short staffed and patient care compromised.

It was a sleight of hand.

Look over here so regulators wouldn't know what Krausman and Konig were up to.

It means that there were bad outcomes, false pressure, ulcers, use of antipsychotic medications.

The people in their care have suffered and they have made a lot of money.

Jersey's long term care ombudsman applauds the controllers deep dive into conditions and finances at South Jersey Extended Care.

Walsh will suspend Krausman, White and Koenig from Jersey's Medicaid program here and at its one star sister facility, Sterling Manor in Maple Shade, within 60 days.

In fact, Krausman and Koenig operated a network of ten facilities among New Jersey's worst.

But it takes forensic auditing to uncover.

If you're finding it here.

How do you know it doesn't exist anyplace else?

You don't.

You just don't know.

I think it's long past time that we look deeply into the finances of these types of nursing homes and try to figure out where the money is going.

Well, we know that 75% of new Jersey nursing homes are for profit corporations, and they have very complex financial arrangements here.

Dollars and those dollars are taxpayer dollars.

And there is absolutely, very little oversight on how those dollars are spent, how much goes to patient care, and how much is just going to line the pockets of the owners.

Advocates back a bill sponsored by Senator Joe Vitale that would require complete transparency around nursing home finances and ownership.

Turns out Koenig was banned by Massachusetts and Connecticut, but industry lobbyists call disclosures an unfunded mandate.

No one objected to the state audited financial statements that are submitted to the state.

No one objected to the state assuring the accuracy of those records.

What we objected to is the state trying to pass off the cost of that auditing program on to providers, without increasing payment rates in any way.

Spokesman Andy Aronson points out Carnegie's nursing homes are not part of his association.

Other advocates say Medicare and Medicaid facilities should be transparent.

These are companies that are paying using taxpayer dollars to pay themselves money for, services that we can't guarantee that they're providing.

And that's the point here.

We're we're not asking random companies out there to provide information.

An attorney for Krausman White's and Konig call the report's findings defamatory and wholly unsupportable.

Meanwhile, Jersey's Department of Health issued a plan of action to South Jersey extended care, requiring it to hire an administrator and produce financial records without government funding.

The facility and Sterling Manor both face possible closure.

I'm Brenda Flanagan, NJ Spotlight News.