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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

C, a privately held Delaware company with headquarters in Atlanta, Georgia, also reportedly controlled by Schron. Sava affiliates lease and operate nursing homes.

The "qui tam" (whistleblower) lawsuit and the U.S. Department of Justice make two major allegations:

  1. Schron, Grunstein and Forman allegedly solicited and accepted a nearly $50 million kickback from Omnicare, the nation's largest provider of pharmacy services for nursing homes, in return for contracts with the nursing home chains.
  2. Once they learned they were under government investigation, Mr. Schron, with the help of Mr. Grunstein and Mr. Forman, allegedly tried to cover-up the kickback by creating false documents and backdating them.

Under the terms of the settlement agreement, Schron, Grunstein, Forman and the nursing home chains have paid $7.8 million to the federal government and $6.1 million to certain states that lost Medicaid funds as a result of the fraud. Omnicare paid $19.8 million in November to settle its portion of the whistleblower
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SOURCE Phillips & Cohen LLP
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