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Millions of Dollars Taken In Nursing Home Investment Deals

financial exploitation

Investors Claim Rabbi Stole Millions Out of Chicago Nursing Home Deals

Several investors have come forward alleging a Skokie-based investment firm run by a rabbi, stole more than $20 million in a series of nursing home and retirement home funds around the Chicago suburbs in Norridge, South Holland and Morris, along with one Downstate, one in Indiana and the New Jersey facility. The suit alleges the investors are owed a total of more than $24 million counting interest due on their initial contributions.

According to a May 2018 report by The Real Deal, a publication catering towards Chicago real estate professionals, “a similar lawsuit filed in September in federal court in Chicago that alleges violations of the RICO act … In that suit, the investment firm created a series of LLCs to buy and sell nursing homes and retirement homes across the country, including several in the Chicago area and one in Wayne, New Jersey, according to the plaintiffs’ attorney, Craig Tobin.” Soon after, the firm was found to be keeping profits for themselves and not giving any to the investors and filling their pockets by taking from others who rely on nursing homes to survive. The scheme victimized “a 90-year-old Holocaust survivor, school teachers and sophisticated banking institutions,” the suit says. The federal lawsuit seeks more than $20 million in damages.

Investor-owned, for-profit health care businesses and the implications their partnership brings too often impacts the quality nursing home facilities require to thrive. In addition, the result of ownership and the corporatization of health care in the nursing home industry is too often heard about and with it comes the awful stories of how care suffers as more nursing homes feed money into investments and corporate webs. Stories similar to this egregious financial and property exploitation are maddening reminders that anyone involved in nursing home care, even those behind the scenes, can be greedy, dishonest, and abuse their power. At Levin & Perconti, we have long been advocates of taking steps to limit the chance for vulnerable nursing home care to be exploited.

Skilled Attorneys Can Speak Against Nursing Home Wrongdoers

Levin & Perconti has become one of the most widely-known and respected nursing home abuse and neglect law firms in Illinois, achieving multiple million dollar verdicts and settlements. Our experiences have helped us empathize with the families of nursing home abuse victims and help them move forward once trust has been broken.

If a loved one has been financially exploited by the staff in their nursing home, they may be entitled to compensation. In Illinois, there is a time limit to file a case like this, so please contact us now for a free consultation with one of our skilled nursing home attorneys.