Fairfield, New Haven Counties Nursing Home Operator Convicted of Embezzlement
A Connecticut nursing home operator has been sentenced to 30 months in prison for embezzlement and tax offenses related to operating nursing homes.
Chaim Stern, 72, a resident of Flushing, Queens, was sentenced on Tuesday, April 20, for offenses relating to the retirement homes in Bridgeport and Waterbury, said Leonard C Boyle, acting U.S. district attorney for Connecticut.
According to court documents and court statements, Stern was the primary operator of Bridgeport Health Care Center, Bridgeport Manor and Rosegarden Health and Rehabilitation Center in Waterbury, which were private nursing and rehabilitation facilities.
Between around 2011 and 2018, Stern stole more than $ 4.1 million from the company’s pension plan by diverting the money to a purported charity, called Em Kol Chai, which Stern controlled, as well as to itself and to other entities.
Additionally, in February 2015, Stern misapplied $ 305,608.06 from the company’s health plan by diverting money from a loss insurance plan intended to pay an employee’s health claim and Rather, used it for other purposes, including Em Kol Chai, the BHCC operation, and for Stern’s personal use, according to the criminal complaint.
Stern also failed to pay millions of dollars in other health insurance claims he was obligated to pay on behalf of his employees, which in many cases resulted in debt collection action against employees by health care providers.
Additionally, from at least January 2017 to March 2018, Stern did not pay payroll taxes, resulting in a tax loss of $ 4,356,409.85.
In January 2020, Stern pleaded guilty to one count of theft or embezzlement in an employee benefit plan, one count of theft or embezzlement in relation to healthcare and one count of willful failure to pay taxes.
He has already made about $ 4.1 million in criminal compensation to the pension plan, along with some lost interest, as agreed in a related civil case.
Stern was also ordered to pay restitution to members of the health care plan whose claims were unpaid, as the $ 2.5 million already paid by Stern and his insurance company as part of the related civil action do not cover all of these claims.
Stern, who is released on $ 500,000 bail, is due to report to jail on Wednesday, May 26.
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