Business ProfileforMartine Center for Rehabilitation and Healthcare

The following describes a pending government action that has been formally brought by a government agency but has not yet been resolved. We are providing a summary of the governments allegations, which have not yet been proven.

On 6/28/2023, New York Attorney General Letitia James announced that a lawsuit had been filed against the owners, operators, and landlords of four nursing homes for years of repeated and persistent fraud and illegally misusing more than $83 million in taxpayer money that resulted in significant resident neglect, harm, and humiliation. The nursing homes, owned and operated by Centers for Care LLC, doing business as Centers Health Care, include Beth Abraham Center for Rehabilitation and Nursing (Beth Abraham Center) in Bronx County, Buffalo Center for Rehabilitation and Nursing (Buffalo Center) in Erie County, Holliswood Center for Rehabilitation and Healthcare (Holliswood Center) in Queens County, and Martine Center for Rehabilitation and Nursing (Martine Center) in Westchester County. Residents at these facilities were forced to sit for hours in their own urine and feces, suffered from severe dehydration, malnutrition, and increased risk of death, developed infections and sepsis from untreated bed sores and inconsistent wound care, sustained life-changing injuries from falls, and died.

Following an investigation by the Office of the Attorney General’s (OAG) Medicaid Fraud Control Unit (MFCU), the lawsuit alleges that the nursing homes’ owners and operators converted more than $83 million in Medicaid and Medicare funds to enrich themselves, their families, and business associates through an elaborate network of related companies and collusive, fraudulent transactions, rather than use the funds for their intended purposes of providing sufficient staffing and required resident care. To stop further harm and suffering, Attorney General James is seeking to prohibit the nursing homes from admitting new residents until staffing meets appropriate standards, to implement a financial monitor and a healthcare monitor, and to disgorge any and all wrongfully received government funds.Under New York law, owners of nursing homes have a “special obligation” to ensure the highest possible quality of life for residents, and to sufficiently staff the facility to provide adequate care to all residents.

The lawsuit alleges that the owners, operators, and landlords of the nursing homes and related companies wove a complicated web of fraudulent financial schemes to siphon money from the nursing homes, while they ignored and violated numerous laws designed to protect nursing home residents, resulting in preventable neglect and harm of vulnerable New Yorkers. The nursing homes are allegedly all controlled and managed by Centers for Care LLC doing business as Centers Health Care (Centers Health Care), a multistate network of nursing, rehabilitation, and senior care services and facilities. Beth Abraham Center is a 448-bed facility in the Bronx; Buffalo Center is a 200-bed facility in Buffalo; Holliswood Center is a 314-bed facility in Queens; and Martine Center is a 200-bed facility in White Plains.

Centers Health Care is co-owned by Kenneth Rozenberg and Daryl Hagler.The companies named in the lawsuit are Abraham Operations Associates LLC, Delaware Operations Associates LLC, Hollis Operating Co. LLC, and Schnur Operations Associates LLC, doing business as Beth Abraham Center, Buffalo Center, Holliswood Center, and Martine Center, respectively. These companies are owned by Rozenberg. Also named are Light Property Holdings Associates LLC (Light Property), Delaware Real Property Associates LLC (Delaware Property), Hollis Real Estate Co. LLC (Hollis Real Estate), and Light Property Holdings II Associates LLC (Light Property II), which own the real property on which the nursing homes are located.

These property companies are owned by Hagler.Also named in the lawsuit are: Light Operational Holdings Associates LLC (Light Operational), an entity that owns 98 percent of Beth Abraham Center and 65 percent of Martine Center; CFSC Downstate LLC (CFSC); BIS Funding Capital LLC (BIS Funding); and Skilled Staffing LLC (Skilled Staffing) — all companies owned by Rozenberg, Hagler, their family members, and business associates that received payments from the nursing homes for purportedly providing services.