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Prominent New York City Real Estate Investor, Attorney and Atlanta Nursing Home Chains Pay $14 Million to Settle Whistleblower Kickback Case
Date:2/26/2010

real estate market, a Long Island associate and two Atlanta-based nursing home chains have paid the federal government and certain state Medicaid programs a total of $14 million to settle a whistleblower lawsuit alleging Medicare and Medicaid fraud involving a kickback and a cover-up.

The defendants in today's settlement are:

  • Rubin Schron, a New York real estate investor who along with National Senior Care Inc., bought Mariner Health Care Inc., which is at the center of the kickback scheme.
  • Leonard Grunstein, a New York real estate attorney who was a partner with the law firm, Troutman Sanders. He was Schron's agent in the purchase of Mariner Health Care Inc. and in the alleged kickback scheme.
  • Murray Forman, an associate of Grunstein's and Schron's who also is president of a Long Island school board.
  • Mariner Health Care Inc., a Delaware corporation with headquarters in Atlanta, Georgia, that operates nursing homes and, according to the government's complaint in this case, is controlled by Schron.
  • SavaSeniorCare Administrative Services LL
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SOURCE Phillips & Cohen LLP
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