This indictment names Sam Halper as having ownership interest and a management role in approximately 16 health care facilities known collectively as CHMS facilities. Sam Halper and Comprehensive Health Care Management Services (CHMS) Group LLC are also named defendants in an August 5, 2022, indictment by the United States District Court for the Western District of Pennsylvania. They allege that David Gast, Ephram Lahasky and Sam Halper primarily owned and operated the Villages. The OAG investigation determined that despite official paperwork stating that the Villages is owned by Bernard Fuchs, he had limited responsibility. The Villages of Orleans, LLC, CHMS Group LLC, and ML Kids Holding LLC are also named. Other named respondents include Ephram Lahasky, Benjamin Landa, Joshua Farkovits, Teresa Lichtschein, Debbie Korngut, and Sam Halper. Multiple respondents are named in the complaint, including Bernard Fuchs, and several family members including Gerald and Tova Fuchs, Joel Edelstein and Israel Freund. Some Named Respondents Also Indicted for Health Care Fraud in Pennsylvania Despite dangerously low staffing levels, the owners sought to increase resident admissions to drive up revenue and profits. The owners failed to provide personal protective equipment (PPE) to staff and forced sick staff members to work. During this time, nursing home management sought to hide positive cases of COVID-19 and failed to implement protocols for quarantining infected residents and staff members. The already horrendous quality of care only worsened during the COVID-19 pandemic. Other residents suffered falls from lack of supervision, and others became malnourished or dehydrated from lack of necessary care. Some residents developed infections, such as sepsis and gangrene from pressure ulcers that were not properly cared for. Residents reported being forced to sit in their own waste for hours on end. The OAG asserts that insufficient staffing driven by the owner’s financial scheme resulted in poor quality care, abuse, and neglect. Nursing home negligence lawyers who have reviewed the lawsuit state that it cites multiple instances of harm caused by the owners’ neglect. Within four months after the owners purchased the Villages, the facility’s star rating plummeted from 3 stars to 1 star, the lowest possible quality rating. The Villages owners also have ownership interest in Comprehensive Healthcare Management Services (CHMS) Group LLC, which provides administrative services such as accounting, insurance billing, and payroll to the Villages.īetween 20, the Villages paid over 20% of its operating budget – approximately $18.6 million – to Telegraph and CHMS. Afterwards, the Villages paid rental fees to Telegraph Realty. The owners established Telegraph Realty LLC to buy the real property that the Villages lies on in January 2015. The sole owner of the Villages, as well as multiple family members are named in the lawsuit, and are referred to as “owners.” Nursing home negligence lawyers have seen multiple examples where complex ownership models are used to funnel profits away from residents and into the hands of owners. The financial scheme involved a complicated web in which the owners established multiple companies in which to siphon the funds. The lawsuit alleges that the owners diverted funds intended for resident care to increase personal profits from the company. Nursing home negligence lawyers believe this indictment is a reflection of an industry plagued with bad actors who often prioritize profits over quality resident care.Īccording to Attorney General, the nursing home and its owners failed to uphold their duty of care, and that breach of duty resulted in neglect, harm, and abysmal resident care. The attorney general alleges that the owners took advantage of the state’s Medicaid program to drive profits rather than providing adequate staffing and patient care at the facility. According to the Office of the Attorney General, the lawsuit follows an in-depth investigation of The Village of Orleans Health and Rehabilitation Center (The Villages). Nursing home negligence lawyers are watching a new lawsuit filed by New York Attorney General Letitia James against a New York nursing home alleging fraud and neglect.
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