Seniors Housing Weekly Update-- Legal Problems For Some Operators
September 25, 2012
Legal Problems For Some Operators
Unfortunately, the senior care business has been making a lot of legal headlines lately. First of all, a federal grand jury finally indicted Jon Harder, founder and former CEO of Sunwest Management, on 56 counts including mail and wire fraud, money laundering and criminal forfeiture, claiming he defrauded investors out of $130 million. Authorities have already seized four cars and will be going after several personal real estate assets as well as a $200,000 diamond ring. Apparently, he is now being represented by the public defender’s office. Elsewhere, it appears that Rubin Schron won his lawsuit against Leonard Grunstein and Murray Foreman, involving, among other things, whether a $100 million loan between them ever existed. The Supreme Court of the State of New York decided it did, and Grunstein will either have to pay it back or fork over the ownership of Sava Senior Care, which operates about 130 SNFs. Meanwhile, Connecticut nursing home operator Spectrum Healthcare filed for bankruptcy protection after a long fight with the local union. Stay tuned.