The New York attorney general has filed a lawsuit alleging a long-running financial fraud involving a major owner of U.S. nursing homes.
The New York attorney general on Tuesday filed a lawsuit alleging a long-running financial fraud involving a major owner of U.S. nursing homes.
Asked whether James is investigating any other facilities affiliated with Lahasky, a spokeswoman for the attorney general said, “our nursing home investigations are ongoing.” The attorney general’s office worked closely with the U.S. Department of Health and Human Services on the Villages of Orleans investigation, she said.
Lahasky did not respond to requests for comment. Early this year, Lahasky told MarketWatch that “all you hear about is the bad stuff,” adding that “nobody hears about the average facility” where residents get all the care they need. Fuchs could not be reached for comment. “Most nursing homes are complaining they’re losing money,” whereas profits are often siphoned out through related-party organizations, said Charlene Harrington, professor emerita at the University of California San Francisco.
“The lawsuit has no merit whatsoever,” said Howard Fensterman, an attorney for Landa, adding that Landa owns an 8% interest in the real estate entity and is not an owner of the nursing home operations. “A landlord can always refinance a building and take money out of the building if they choose,” he said. “It has nothing to do with the operations.”
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