A New York judge has denied a motion to dismiss a lawsuit accusing four nursing homes, including the Beth Abraham Center for Rehabilitation and Nursing, of defrauding Medicare and Medicaid and neglecting residents. The case, brought by New York Attorney General Letitia James, alleges the misappropriation of over $83 million in funds and claims the nursing homes subjected residents to severe neglect.
Abraham Center $83M Fraud Suit : Judge Rejects Dismissal Effort
On Friday, Justice Melissa A. Crane rejected arguments from the Beth Abraham Center, along with the Buffalo Center for Rehabilitation and Nursing, the Holliswood Center for Rehabilitation and Healthcare, and the Martine Center for Rehabilitation and Nursing, which contended that the court lacked jurisdiction over some defendants and that the attorney general’s office had no standing to pursue the claims. The defendants argued that the state’s allegations of wrongdoing before November 2016 were time-barred, but the judge sided with the state, citing the “continuing wrong” doctrine, which extends the statute of limitations in cases involving persistent illegal activity.
Abraham Center $83M Fraud Suit : Allegations of Fraud and Neglect
The lawsuit, filed in June 2023, claims that the nursing homes, controlled by Centers for Care LLC, funneled millions intended for patient care into other areas, neglecting the health and well-being of residents. Attorney General James’ office alleges that Kenneth Rozenberg and Darryl Hagler, both 50% owners of Centers for Care, orchestrated these schemes, which included forcing inflated rental payments through excessive lease agreements.
