AG Sues Nursing Home Owners and Operators for Alleged Financial Fraud and Resident Neglect
On June 28, 2023, New York State Attorney General Letitia James filed a lawsuit against four (4) nursing homes, each owned and operated by Centers for Care LCC d/b/a Centers Health Care, alleging that they misused more than $83 million in taxpayer funds. The facilities named in the lawsuit include Beth Abraham Center for Rehabilitation and Nursing in the Bronx, Buffalo Center for Rehabilitation and Nursing in Erie County, Holliswood Center for Rehabilitation and Healthcare in Queens, and Maritime Center for Rehabilitation and Nursing in Westchester County. As set forth in the lawsuit, the owners and operators of these facilities allegedly diverted Medicare and Medicaid funds intended to ensure sufficient staffing to provide resident care. Instead, those funds were allegedly used for the benefit of the owners and operators through payments to an elaborate network of related companies and fraudulent transactions, including the purchase of a controlling stake in a major airline, real estate transactions, loans with inflated interest rates, fees paid to companies they and their family members owned, and inflated salaries.
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