Letitia James sues Avi and Bent Philipson for allegedly diverting funds at nursing home – The Real Deal

New York Attorney General Letitia James with Cold Spring Hills (Getty, Senior Advice)

New York Attorney General Letitia James is suing a Long Island nursing home and its owners, including Brooklyn real estate investor Avi Philipson and his father, Bent Philipson, for allegedly diverting government funds, resulting in severe understaffing and neglect of residents.

The lawsuit comes as a group led by Avi Philipson is set to acquire All Year Holding’s North Brooklyn real estate portfolio for $43.5 million.

Philipson’s group also recently sought to buy All Year’s stake in the William Vale Hotel in Williamsburg, but the deal fell through.

Avi Philipson, through an attorney, declined to comment. Bent Philipson’s attorney did not return a request for comment. All Year declined to comment.

The attorney general alleges the operators of Cold Spring Hills, a 588-bed nursing home in Oyster Bay, used 13 companies to create the appearance they were paying for services for the nursing home, but were actually diverting Medicaid and Medicare funds to themselves.

According to the attorney general, an investigation found that Cold Spring Hills’ owners diverted over $22.6 million in Medicaid and Medicare funds from resident care through a fraudulent network of companies that were used to conceal profit taking.

“Cold Spring Hills’ owners put profits over patient care and left vulnerable New Yorkers to live in heartbreaking and inhumane conditions,” James said in a statement.

Her 186-page complaint also names nursing home operator Benjamin Landa as a defendant along with Benjamin Landa’s adult daughter.

“The harrowing breadth and depth of the findings of resident neglect, harm and suffering, and the persistent fraud and illegality in respondents’ operation of Cold Spring Hills is appalling and warrants due exposure and redress,” the complaint states.

The attorney general alleges the scheme involved a hidden illegal promissory note

The original article can be found here