Nursing homes experience fallout from owner's embezzlement

Following the arrest of the owner of two New York nursing homes on embezzlement charges, the state's Department of Health is currently in the process of putting one of the facilities into receivership, the Daily News Online reports.

An investigation by the FBI and Internal Revenue Service revealed that the home's owner, Marc Korn, embezzled at least $190,000 from the payroll and patient accounts at Batavia Nursing Home, as well as Lewiston-based Fairchild Manor Nursing Home. Additionally, he was found to have embezzled funds from the American Friends of Assaf Harofeh Medical Center.

Last month, Korn was charged with scheming to defraud, which carries a maximum penalty of 20 years in federal prison.

Fairchild Manor Nursing Home recently announced that it is shutting down as the result of several years of financial hardship that were compounded by Korn's embezzlement, the Buffalo News reports.

Residents will be relocated in the coming months, and will all be given the option of transferring to another facility in Niagara County, according to a Department of Health statement quoted by the news source.

Related Headlines