People v. Abraham Operations Assoc. LLC

2024 NY Slip Op 32976(U)
New York Supreme Court, New York County·Decided August 23, 2024·No. Index No. 451549/2023·Unpublished

Opinion

People v Abraham Operations Assoc. LLC 2024 NY Slip Op 32976(U) August 23, 2024 Supreme Court, New York County Docket Number: Index No. 451549/2023 Judge: Melissa A. Crane Cases posted with a "30000" identifier, i.e., 2013 NY Slip Op 30001(U), are republished from various New York State and local government sources, including the New York State Unified Court System's eCourts Service. This opinion is uncorrected and not selected for official publication. INDEX NO. 451549/2023 NYSCEF DOC. NO. 886 RECEIVED NYSCEF: 08/23/2024

SUPREME COURT OF THE STATE OF NEW YORK NEW YORK COUNTY PRESENT: HON. MELISSA A. CRANE PART 60M Justice ----------------------------------------------------------------- ----------------X INDEX NO. 451549/2023 PEOPLE OF THE STATE OF NEW YORK, BY LETITIA JAMES, ATTORNEY GENERAL OF THE STATE OF NEW 02/13/2024, YORK, MOTION DATE 02/13/2024

Plaintiff, MOTION SEQ. NO. 002 003

- V -

ABRAHAM OPERATIONS ASSOCIATES LLC OBA BETH ABRAHAM CENTER FOR REHABILITATION AND NURSING, DELAWARE OPERATIONS ASSOCIATES LLC OBA BUFFALO CENTER FOR REHABILITATION AND NURSING, HOLLIS OPERATING CO LLC OBA HOLLISWOOD CENTER FOR REHABILITATION AND HEALTHCARE, SCHNUR OPERATIONS ASSOCIATES LLC OBA MARTINE CENTER FOR REHABILITATION AND NURSING, LIGHT PROPERTY HOLDINGS ASSOCIATES LLC,DELAWARE REAL PROPERTY ASSOCIATES DECISION + ORDER ON LLC,HOLLIS REAL ESTATE CO LLC,LIGHT OPERATIONAL HOLDINGS ASSOCIATES LLC,LIGHT MOTION PROPERTY HOLDINGS II ASSOCIATES LLC,CENTERS FOR CARE LLC OBA CENTERS HEAL TH CARE, CFSC DOWNSTATE LLC,BIS FUNDING CAPITAL LLC,SKILLED STAFFING LLC,KENNETH ROZENBERG, DARYL HAGLER, BETH ROZENBERG, JEFFREY SICKLICK, LEO LERNER, REUVEN KAUFMAN, AMIR ABRAMCHIK, DAVID GREENBERG, ELLIOT KAHAN, SOL BLUMENFELD, ARON GITTLESON, AHARON LANTZITSKY, JONATHAN HAGLER, MORDECHAI MOTi HELLMAN,

Defendant. ------------------------------------------------------------------- --------------X

The following e-filed documents, listed by NYSCEF document number (Motion 002) 779, 780, 781, 782, 783,810,860 were read on this motion to/for DISMISS

The following e-filed documents, listed by NYSCEF document number (Motion 003) 784, 785, 805, 806, 807,808,809,811,812,813 were read on this motion to/for DISMISS

The Attorney General of the State of New York commenced this special proceeding,

pursuant to NY Executive Law § 63 (12), by filing its verified petition on June 28, 2023

451549/2023 PEOPLE OF THE STATE OF NEW YORK, BY LETITIA JAMES, AHORNEY Page 1 of 21 GENERAL OF THE STATE OF NEW YORK vs. ABRAHAM OPERATIONS ASSOCIATES LLC DBA BETH ABRAHAM CENTER FOR REHABILITATION AND NURSING ET AL Motion No. 002 003

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(NYSCEF Document Number [Doc] 1 [verified petition]). In Motions 2 and 3, respondents

move to dismiss the petition pursuant to CPLR 3211 (a) (1), (a) (7), and (a) (8).

Background

The facts are from the petition unless noted otherwise.

Petitioner asserts that the respondents engaged in persistent fraud and illegality in their

operation, ownership, and control of four nursing homes: Beth Abraham Center for

Rehabilitation and Nursing in the Bronx ("Beth Abraham Center"); Buffalo Center for

Rehabilitation and Nursing in Buffalo ("Buffalo Center"); Holliswood Center for Rehabilitation

and Healthcare in Queens ("Holliswood Center"); and Martine Center for Rehabilitation and

Nursing in White Plains ( "Martine Center") (collectively, the "Nursing Homes").

According to the petition, all of the Nursing Homes are operated by Centers for Care

LLC ("Centers"). "Centers controls and manages the Nursing Homes under the guise of

providing management consulting services" (Doc 1, ,i 54). Petitioner asserts that respondents

Kenneth Rozenberg ("Rozenberg") and Darryl Hagler ("Hagler") each hold a 50% ownership

interest in Centers (id.). The individual respondents, including Rozenberg and Hagler, are co-

owners of the Nursing Homes, the LLCs that own the properties where the nursing homes are

located, as well as the companies that operate, manage, or otherwise provide services to the

nursing homes.

The Other Corporate Respondents

Abraham Operations Associates LLC ("Abraham Operations"), d/b/a Beth Abraham

Center for Rehabilitation and Nursing, is a for-profit 448-bed nursing home. Light Operational

Holdings Assocs. LLC ("Light Operational") is the 98% owner of Beth Abraham Center, and

Rozenberg owns 95% of Light Operational. Rozenberg' s daughter, Rivka Rozenberg, holds the

451549/2023 PEOPLE OF THE STATE OF NEW YORK, BY LETITIA JAMES, AHORNEY Page 2 of 21 GENERAL OF THE STATE OF NEW YORK vs. ABRAHAM OPERATIONS ASSOCIATES LLC DBA BETH ABRAHAM CENTER FOR REHABILITATION AND NURSING ET AL Motion No. 002 003

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remaining 5%. Light Property Holdings Associates LLC ("Light Property") owns the real

property where Beth Abraham Center is located and is Beth Abraham's landlord. Hagler owns

99% of Light Property. His son, Jonathan Hagler, owns the other 1%.

Delaware Operations Associates LLC ("Delaware Operations"), d/b/a Buffalo Center for

Rehabilitation and Nursing, is a 200-bed for-profit nursing home located in Buffalo. Rozenberg

is Buffalo Center's 90% owner and Jeffrey Sicklick is its 10% owner. Delaware Real Property

Associates LLC ("Del. Real Property") owns the real property where Buffalo Center is located.

Hagler owns 99% of Del Real Property and his son owns the other 1%.

Hollis Operating Co., LLC ("Hollis Operating Co.") d/b/a Holliswood Center for

Rehabilitation and Healthcare is a 314-bed for-profit nursing home located at Hollis. It is owned

by Rozenberg (95.5%), Sicklick (2.5%), and Leo Lerner (2%). Hollis Real Estate Co., LLC

("Hollis Real Estate") owns the real property where Hollis Center is located. Hagler owns 90%

of Hollis Real Estate and Mordechai "Moti" Hellman owns the remaining 10%.

Schnur Operations Associates LLC ("Schnur Associates"), d/b/a Martine Center for

Rehabilitation and Nursing, is a 200-bed for-profit nursing home in White Plains. Light

Operational owns 65% of Martine Center and the remaining interest is held by Amir Abramchik

(10%), David Greenberg (10%), Elliot Kahan (10%), Rozenberg (4%), and Sol Blumenfeld

(1 %). As noted above, Rozenberg is the 95% owner of Light Operational. Light Property

Holdings II Associates LLC ("Light Property II") owns the White Plains real estate where

Martine Center is located. Hagler owns 99% of Light Property II and his son Jonathan owns the

remaining 1%.

The Nursing Homes paid funds to BIS Funding Capital LLC ("BIS"), owned by Hagler

(99%) and his son Jonathan (1 %), "purportedly in exchange for software and major movable

451549/2023 PEOPLE OF THE STATE OF NEW YORK, BY LETITIA JAMES, AHORNEY Page 3 of 21 GENERAL OF THE STATE OF NEW YORK vs. ABRAHAM OPERATIONS ASSOCIATES LLC DBA BETH ABRAHAM CENTER FOR REHABILITATION AND NURSING ET AL Motion No. 002 003

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equipment and other goods and services" (id. para 51). CFSC Downstate, LLC ("CFSC

Downstate") is a New York limited liability company. Skilled Staffing, LLC ("Skilled

Staffing") is a staffing agency owned by Shoshana Areman (majority) and Elisabeth Farkas

(minority). Farkas is Rozenberg's daughter-in-law. Skilled Staffing received funds from the

Nursing Homes for purported management and consulting services.

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People v. Abraham Operations Assoc. LLC, 2024 NY Slip Op 32976(U) (N.Y. Super. Ct. 2024).

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