The landlord of an upstate New York nursing home and the unlicensed operators who ran the facility for years before its 2021 closure have agreed to pay nearly $7.2 million to resolve False Claims Act allegations.
In a settlement announcement Monday, the Justice Department outlined four years of mismanagement, patient safety violations and fraudulent billing at the Saratoga Center for Rehabilitation and Skilled Nursing Care located in Ballston Spa, about 30 miles north of Albany.
The settling parties were identified as Leon Melohn; Alan “Ari” Schwartz; Jeffrey Vegh; Jack Jaffa; 149 Ballston Ave., LLC; Ballston Two, LLC; Saratoga Center for Care, LLC; and Saratoga Care and Rehabilitation Center, LLC.
Together, they will be responsible for repaying $7,168,000 in Medicaid funding officials say they claimed illegally during years they ran the facility without a license, officials said.
Skyline Management Group had operational control of the facility for at least a year, but only its partner Jaffa was named in the settlement. Skyline’s principal, Joseph Schwartz, is already under federal indictment in New Jersey for an alleged $29.5 million tax fraud; he is reportedly working on a plea deal that could resolve multiple charges across the US.
In 2014, New York officials approved Ari Schwartz and Vegh to operate Saratoga Center with Melohn, who was to serve as the landlord. Under the license, Schwartz and Vegh could not delegate their responsibility to oversee...
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