A nursing home in the state of New York will have to pay financial penalties and undergo reforms after being accused of neglecting residents and committing financial fraud.
New York State Attorney General Letitia James announced the settlement that was reached with Van Duyn Center for Rehabilitation and Nursing in Syracuse, and its owners and operators, Efraim Steif and Uri Koenig. James said an investigation by her office found that Steif and Koenig received millions of dollars of taxpayer funds that were meant for resident care. As a result, the nursing home was left severely understaffed, causing residents to suffer in unsafe conditions that jeopardized their health. The facility and its owners diverted tens of millions of dollars to themselves through a variety of schemes related to inflated rental payments and mortgages on the nursing home property, prosecutors said.
Under terms of the settlement, Van Duyn and its owners will pay a total of $12 million, including $10 million to directly fund improved resident care and staffing. Furthermore, the Office of the Attorney General will install independent monitors to oversee and improve the facility’s health and financial operations.
“For years, residents at Van Duyn endured unacceptable neglect that caused traumatic injuries and tragic deaths,” said James. “We are holding Van Duyn’s owners accountable for these conditions, and ensuring the facility will make all the necessary changes so that its residents get the care they deserve. I will always fight for the dignity and rights of vulnerable New Yorkers, and I will continue to go after nursing homes and their owners when they fail to take care of their residents.”
James stated that residents of Van Duyn lived in unsafe conditions before, during and after the COVID-19 pandemic and that insufficient staffing led to severe neglect of vulnerable residents, who often had no help with basic daily tasks.
The attorney general cited some examples of the unsafe conditions, including:
-A resident died after Van Duyn failed to properly communicate her care plan to staff, resulting in staff failing to assist her to the bathroom. The woman fell in her room and her nightgown caught on a door handle, strangling her to death. The staff was unaware of this until they found her body.
-A resident was found dead in rigor mortis after Van Duyn failed to appropriately provide care and medication, failed to appropriately assess the resident’s skin upon admission and throughout the resident’s stay, and failed to properly assess the resident after a fall.
-Other residents were sent to the hospital with bacterial infections, bed sores, and improperly monitored and treated glucose levels.
-Multiple residents were inappropriately discharged from Van Duyn and dropped off at a Department of Social Services office without identification, putting them at serious risk of harm.
James also detailed the fraud allegations, stating that Van Duyn’s owners withdrew tens of millions of dollars for themselves by taking out a mortgage on Van Duyn’s property and charging the nursing home fraudulently inflated rental payments. From 2015 to 2022, the nursing home paid its owners an inflated rent using Medicare and Medicaid funds, resulting in fewer resources available to adequately staff and maintain the facility, according to the attorney general. The investigation also found that Steif and Koenig transferred over $2 million to themselves by fraudulently paying themselves salaries for work, at least some of which they never performed.
As a result of the settlement, Van Duyn’s owners must pay for and appoint an Independent Health Monitor to oversee all health care operations at the facility and ensure it improves resident care. The IHM will make recommendations that Van Duyn must implement, including raising staff pay, to ensure the nursing home consistently operates with sufficient staff levels to provide all required care.
The nursing home owners must also pay for and appoint an Independent Financial Monitor to oversee Van Duyn’s finances, ensure compliance with the settlement and the law, and prevent future fraud, as well as a Chief Compliance Officer responsible for ensuring the monitor’s recommendations are fully implemented, and that Van Duyn complies with all federal and state laws to prevent future resident mistreatment, neglect, and financial fraud.
James added that Van Duyn and its owners failed to produce timely and complete information in response to subpoenas during the investigation, and that a court compelled Van Duyn to comply with the subpoenas.
“What happened at Van Duyn is heartbreaking and infuriating. Families entrusted this facility with the care of their loved ones, only to see that trust betrayed while owners pocketed millions in taxpayer dollars,” said Senator Chris Ryan. “Syracuse seniors and their families deserve dignity, safety, and compassion — not neglect and abuse.”
In legal documents detailing the settlement, Van Duyn’s owners did not admit to or deny the attorney general’s findings.
Taking Action To Protect Loved Ones
If your loved one has been the victim of nursing home abuse or neglect, don’t hesitate to seek legal help. By consulting with an experienced nursing home abuse attorney, you can take a powerful step towards protecting your loved one’s rights, holding abusers accountable, and securing the compensation your loved one deserves.
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