Preview
FILED: NEW YORK COUNTY CLERK 08/06/2023 10:15 PM INDEX NO. 451549/2023
NYSCEF DOC. NO. 763 RECEIVED NYSCEF: 08/08/2023
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
PEOPLE OF THE STATE OF NEW YORK by
LETITIA JAMES, Attorney General of the State
of New York,
Petitioner,
v.
ABRAHAM OPERATIONS ASSOCIATES LLC
d/b/a BETH ABRAHAM CENTER FOR
REHABILITATION AND NURSING,
DELAWARE OPERATIONS ASSOCIATES
LLC d/b/a BUFFALO CENTER FOR
REHABILITATION AND NURSING, HOLLIS
OPERATING CO., LLC d/b/a HOLLISWOOD
CENTER FOR REHABILITATION AND
HEALTHCARE, SCHNUR OPERATIONS Index No. 451549/2023
ASSOCIATES LLC d/b/a MARTINE CENTER I.A.S. Part 60
FOR REHABILITATION AND NURSING, (Crane, J.)
LIGHT PROPERTY HOLDINGS ASSOCIATES
LLC, DELAWARE REAL PROPERTY
ASSOCIATES LLC, HOLLIS REAL ESTATE AMENDED NOTICE OF APPEAL
CO., LLC, LIGHT OPERATIONAL HOLDINGS
ASSOCIATES LLC, LIGHT PROPERTY
HOLDING II ASSOCIATES LLC, CENTERS
FOR CARE LLC d/b/a CENTERS HEALTH
CARE, CFSC DOWNSTATE, LLC, BIS
FUNDING CAPITAL LLC, SKILLED
STAFFING, LLC, KENNETH ROZENBERG,
DARYL HAGLER, BETH ROZENBERG,
JEFFREY SICKLICK, REUVEN KAUFMAN,
LEO LERNER, AMIR ABRAMCHIK, DAVID
GREENBERG, ELLIOT KAHAN, SOL
BLUMENFELD, ARON GITTLESON,
AHARON LANTZITSKY, JONATHAN
HAGLER, and MORDECHAI “MOTI”
HELLMAN,
Respondents.
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PLEASE TAKE NOTICE that Respondents1 hereby appeal to the Appellate Division of
the Supreme Court, First Department, from the Amended Order (NYSCEF 760, amending
NYSCEF 7462) of the Supreme Court, New York County (Crane, J.S.C.) dated August 3, 2023,
and entered in the Office of the County Clerk, New York County, on August 4, 2023, and from
each and every part thereof. A copy of the Amended Order served with the Notice of Entry on
August 6, 2023 (NYSCEF 762), is annexed hereto, and Respondents’ informational statement is
filed herewith. The Corrected Notice of Entry of NYSCEF 746 (NYSCEF 750) is filed together
with this Amended Notice of Appeal as Exhibit A.
1
Respondents are Abraham Operations Associates LLC d/b/a Beth Abraham Center for
Rehabilitation and Nursing; Delaware Operations Associates LLC d/b/a Buffalo Center for
Rehabilitation and Nursing; Hollis Operating Co., LLC d/b/a Holliswood Center for
Rehabilitation and Healthcare; Schnur Operations Associates LLC d/b/a Martine Center for
Rehabilitation and Nursing; Light Property Holdings Associates LLC; Delaware Real Property
Associates LLC, Hollis Real Estate Co. LLC; Light Operational Holdings Associates LLC; Light
Property Holdings II Associates LLC; Centers for Care LLC d/b/a Centers Health 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; and Mordechai “Moti” Hellman.
2
The Amended Order, NYSCEF 760, corrected a typographical error in the original
Order, NYSCEF 746 at page 2 footnote 2, such that the definition of “Related Parties” mirrors
the actual definition of that term in Schedule 16 of the Cost Reports. See Letters from Petitioner
and Respondents to the Court, NYSCEF 753, 755 (describing and acknowledging the mistake).
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Dated: August 8, 2023 Respectfully submitted,
New York, New York
GANFER SHORE LEEDS & ZAUDERER LLP QUINN EMANUEL URQUHART
Mark C. Zauderer, Esq. & SULLIVAN, LLP
360 Lexington Avenue Manisha M. Sheth, Esq.
New York, New York 10017 Marc L. Greenwald, Esq.
(212) 922-9250 Joanna E. Menillo, Esq.
51 Madison Avenue, 22nd Floor
FRIED, FRANK, HARRIS, SHRIVER New York, NY 10010
& JACOBSON LLP (212) 849-7000
Robin A. Henry, Esq.
Ilan Graff, Esq. CENTRICITY LAW PLLC
One New York Plaza Motty Shulman, Esq.
New York, New York 10004 442 5th Avenue, Suite 2352
(212) 859-8000 New York, New York 10018
(646) 580-1230
Attorneys for Respondents
VIA NYSCEF
Todd A. Pettigrew
One Blue Hill Plaza
Pearl River, NY 10965
Konrad F. Payne
Logan Gowdy
28 Liberty Street
New York, NY 10005
Emily L. Auletta
The Capitol
Albany, NY 12224
Counsel for Petitioner
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Supreme Court of the State of New York
Appellate Division: First Judicial Department
Informational Statement (Pursuant to 22 NYCRR 1250.3 [a]) - Civil
Case Title: Set forth the title of the case as it appears on the summons, notice of petition or order to For Court of Original Instance
show cause by which the matter was or is to be commenced, or as amended.
PEOPLE OF THE STATE OF NEW YORK by LETITIA JAMES, Attorney General of the State of New
York,
Petitioner
Date Notice of Appeal Filed
- against -
ABRAHAM OPERATIONS ASSOCIATES LLC dba BETH ABRAHAM CENTER FOR REHABILITATION
AND NURSING et al., For Appellate Division
Respondents.
Case Type Filing Type
܆Civil Action ܆CPLR article 78 Proceeding ܆Appeal ܆Transferred Proceeding
܆CPLR article 75 Arbitration ܆Special Proceeding Other ܆Original Proceedings ܆CPLR Article 78
Action Commenced under CPLR 214-g ܆Habeas Corpus Proceeding ܆CPLR Article 78 ܆Executive Law § 298
܆Eminent Domain ܆ CPLR 5704 Review
܆Labor Law 220 or 220-b
܆Public Officers Law § 36
܆Real Property Tax Law § 1278
Nature of Suit: Check up to three of the following categories which best reflect the nature of the case.
܆Administrative Review ܆Business Relationships ܆Commercial ܆Contracts
܆Declaratory Judgment ܆Domestic Relations ܆Election Law ܆Estate Matters
܆Family Court ܆Mortgage Foreclosure ܆Miscellaneous ܆Prisoner Discipline & Parole
܆Real Property ܆Statutory ܆Taxation ܆Torts
(other than foreclosure)
Informational Statement - Civil
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Appeal
Paper Appealed From (Check one only): If an appeal has been taken from more than one order or
judgment by the filing of this notice of appeal, please
indicate the below information for each such order or
judgment appealed from on a separate sheet of paper.
܆Amended Decree ܆Determination ܆Order ܆Resettled Order
܆Amended Judgement ܆Finding ܆Order & Judgment ܆Ruling
܆Amended Order
■
܆Interlocutory Decree ܆Partial Decree ܆Other (specify):
܆Decision ܆Interlocutory Judgment ܆Resettled Decree
܆Decree ܆Judgment ܆Resettled Judgment
Court: Supreme Court County: New York
Dated: 08/03/2023 Entered: 08/04/2023
Judge (name in full): Melissa A. Crane Index No.: 451549/2023
Stage: ܆Interlocutory ܆Final ܆Post-Final
■
Trial: ܆Yes ܆No If Yes: ܆Jury ܆Non-Jury
■
Prior Unperfected Appeal ĂŶĚZĞůĂƚĞĚĂƐĞInformation
Are any appeals arising in the same action or proceeding currently pending in the court? ■ Yes տ No
տ
If Yes, please set forth the Appellate Division Case Number assigned to each such appeal.
2023-08350, 2023-08351, 2023-08352
Where appropriate, indicate whether there is any related action or proceeding now in any court of this or any other
jurisdiction, and if so, the status of the case:
Original Proceeding
Commenced by: ܆Order to Show Cause ܆Notice of Petition ܆Writ of Habeas Corpus Date Filed:
Statute authorizing commencement of proceeding in the Appellate Division:
Proceeding Transferred Pursuant to CPLR 7804(g)
Court: Choose Court County: Choose County
Judge (name in full): Order of Transfer Date:
CPLR 5704 Review of Ex Parte Order:
Court: Choose Court County: Choose County
Judge (name in full): Dated:
Description of Appeal, Proceeding or Application and Statement of Issues
Description: If an appeal, briefly describe the paper appealed from. If the appeal is from an order, specify the relief
requested and whether the motion was granted or denied. If an original proceeding commenced in this court or transferred
pursuant to CPLR 7804(g), briefly describe the object of proceeding. If an application under CPLR 5704, briefly describe the
nature of the ex parte order to be reviewed.
This is an appeal from the Amended Order (NYSCEF Doc. No. 760) (correcting a typographical error in NYSCEF Doc. No.
746 at 2 n.2, so that the definition of "Related Parties" mirrors the actual definition of that term in Schedule 16 of the Cost
Reports) of the Supreme Court of the State of New York, County of New York (Crane, J.S.C.) dated August 3, 2023, and
entered in the Office of the County Clerk, New York County, on August 4, 2023, and from each and every part thereof.
Informational Statement - Civil
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Issues: Specify the issues proposed to be raised on the appeal, proceeding, or application for CPLR 5704 review͕ƚŚĞŐƌŽƵŶĚƐ
ĨŽƌƌĞǀĞƌƐĂů͕ŽƌŵŽĚŝĨŝĐĂƚŝŽŶƚŽďĞĂĚǀĂŶĐĞĚĂŶĚƚŚĞƐƉĞĐŝĨŝĐƌĞůŝĞĨƐŽƵŐŚƚŽŶĂƉƉĞĂů͘
The Amended Order (NYSCEF Doc. No. 760) amended NYSCEF Doc. No. 746 (Order imposing an independent financial monitor on Respondents-Appellants) only
insofar as it corrected typographical errors in the definition of "Related Parties" as set forth on page 2, footnote 2. Just as with NYSCEF Doc. No. 746,
Respondents-Appellants intend to raise the following issues, without limitation:
1. The Court directed Centers to retain an unnecessary Independent Financial Monitor (“IFM”) with invasive and disruptive powers over Respondents-Appellants’
records, staff, and facilities akin to that of a receiver—as well as sweeping investigative powers—by Thursday, August 3. Not only does the financial monitor
present a disruptive interference to Centers’ business, the monitor is wholly unnecessary given the financial assurances that Centers offered.
2. Second, the Supreme Court granted the AG access to the reports the monitors would create. This unprecedented access is wholly unnecessary because such
access to the IFM’s reports will allow the AG to pierce privileges and gain information that it could not lawfully gain during the normal course of discovery.
3. Third, the Decision and Order justified the imposition of financial prohibitions that are so vaguely defined that they threaten Centers’ ability to continue to operate.
Respondents-Appellants seek to modify the Order (NYSCEF Doc. No. 760) by striking Paragraphs 5–26.
Party Information
Instructions: Fill in the name of each party to the action or proceeding, one name per line. If this form is to be filed for an
appeal, indicate the status of the party in the court of original instance and his, her, or its status in this court, if any. If this
form is to be filed for a proceeding commenced in this court, fill in only the party’s name and his, her, or its status in this
court.
No. Party Name Original Status Appellate Division Status
1 PEOPLE OF THE STATE OF NEW YORK by LETITIA JAMES, Attorney General of the State of New York Petitioner Respondent
2 ABRAHAM OPERATIONS ASSOCIATES LLC dba BETH ABRAHAM CENTER FOR REHABILITATION AND NURSING et al. Respondent Appellant
3 ABRAHAM OPERATIONS ASSOCIATES LLC d/b/a BETH ABRAHAM CENTER FOR REHABILITATION AND NURSING Respondent Appellant
4 DELAWARE OPERATIONS ASSOCIATES LLC d/b/a BUFFALO CENTER FOR REHABILITATION AND NURSING Respondent Appellant
5 HOLLIS OPERATING CO., LLC d/b/a HOLLISWOOD CENTER FOR REHABILITATION AND HEALTHCARE Respondent Appellant
6 SCHNUR OPERATIONS ASSOCIATES LLC d/b/a MARTINE CENTER FOR REHABILITATION AND NURSING Respondent Appellant
7 LIGHT OPERATIONAL HOLDINGS ASSOCIATES LLC Respondent Appellant
8 CENTERS FOR CARE LLC d/b/a CENTERS HEALTH CARE Respondent Appellant
9 SKILLED STAFFING, LLC Respondent Appellant
10 KENNETH ROZENBERG Respondent Appellant
11 BETH ROZENBERG Respondent Appellant
12 JEFFREY SICKLICK Respondent Appellant
13 LEO LERNER Respondent Appellant
14 REUVEN KAUFMAN Respondent Appellant
15 AMIR ABRAMCHIK Respondent Appellant
16 DAVID GREENBERG Respondent Appellant
17 ELLIOT KAHAN Respondent Appellant
18 SOL BLUMENFELD Respondent Appellant
19 ARON GITTLESON Respondent Appellant
20 AHARON LANTZITSKY and MORDECHAI “MOTI” HELLMAN Respondent Appellant
Informational Statement - Civil
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Attorney Information
Instructions: Fill in the names of the attorneys or firms for the respective parties. If this form is to be filed with the
notice of petition or order to show cause by which a special proceeding is to be commenced in the Appellate Division,
only the name of the attorney for the petitioner need be provided. In the event that a litigant represents herself or
himself, the box marked “Pro Se” must be checked and the appropriate information for that litigant must be supplied
in the spaces provided.
Attorney/Firm Name: Manisha M. Sheth / Quinn Emanuel Urquhart & Sullivan, LLP
Address: 51 Madison Avenue, 22nd Floor
City: New York State: NY Zip: 10010 Telephone No: 212-849-7000
E-mail Address: manishasheth@quinnemanuel.com
Attorney Type: ܆Retained ܆Assigned ܆Government ܆Pro Se ܆Pro Hac Vice
■
Party or Parties RepresenteĚ(set forth party number(s) from table aboveͿ:3, 4, 5, 6, 7
Attorney/Firm Name: Marc L. Greenwald / Quinn Emanuel Urquhart & Sullivan, LLP
Address: 51 Madison Avenue, 22nd Floor
City: New York State: NY Zip: 10010 Telephone No: 212-849-7000
E-mail Address: marcgreenwald@quinnemanuel.com
Attorney Type: ܆Retained ܆Assigned ܆Government ܆Pro Se ܆Pro Hac Vice
■
Party or Parties Represented (set forth party number(s) from table aboveͿ:3, 4, 5, 6, 7
Attorney/Firm Name: William B. Adams / Quinn Emanuel Urquhart & Sullivan, LLP
Address: 51 Madison Avenue, 22nd Floor
City: New York State: NY Zip: 10010 Telephone No: 212-849-7000
E-mail Address: williamadams@quinnemanuel.com
Attorney Type: ܆Retained ܆Assigned ܆Government ܆Pro Se ܆Pro Hac Vice
■
Party or Parties Represented (set forth party number(s) from table aboveͿ: 3, 4, 5, 6, 7
Attorney/Firm Name: Robin A. Henry / Fried, Frank, Harris, Shriver & Jacobson LLP
Address: One New York Plaza
City: New York State: NY Zip: 10004 Telephone No: 212-859-8816
E-mail Address: robin.henry@friedfrank.com
Attorney Type: ܆Retained ܆Assigned ܆Government ܆Pro Se ܆Pro Hac Vice
■
Party or Parties Represented (set forth party number(s) from table aboveͿ: 8-20
Attorney/Firm Name: Mark C. Zauderer / Ganfer Shore Leeds & Zauderer LLP
Address: 360 Lexington Avenue
City: New York State: NY Zip: 10017 Telephone No: 212-922-9250
E-mail Address: mzauderer@ganfershore.com
Attorney Type: ܆Retained ܆Assigned ܆Government ܆Pro Se ܆Pro Hac Vice
■
Party or Parties Represented (set forth party number(s) from table aboveͿ: 8
Attorney/Firm Name: Todd Pettigrew / Office of the New York Attorney General
Address: One Blue Hill Plaza
City: Pearl River State: NY Zip: 10965 Telephone No: 845-732-7500
E-mail Address: Todd.Pettigrew@ag.ny.gov
Attorney Type: ܆Retained ܆Assigned ܆Government ܆Pro Se ܆Pro Hac Vice
■
Party or Parties Represented (set forth party number(s) from table aboveͿ:1
Informational Statement - Civil
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FILED: NEW YORK
YORK COUNTY
COUNTY CLERK
CLERK 08/06/2023
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08:47 PM
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451549/2023
NYSCEF DOC.
NYSCEF DOC. NO.
NO. 763
762 RECEIVED NYSCEF:
RECEIVED NYSCEF: 08/08/2023
08/06/2023
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
PEOPLE OF THE STATE OF NEW YORK by Index No. 451549/2023
LETITIA JAMES, Attorney General of the State of I.A.S. Part 60
New York, (Crane, J.)
Petitioner,
-against- NOTICE OF ENTRY
ABRAHAM OPERATIONS ASSOCIATES LLC
d/b/a BETH ABRAHAM CENTER FOR
REHABILITATION AND NURSING, DELAWARE
OPERATIONS ASSOCIATES LLC d/b/a BUFFALO
CENTER FOR REHABILITATION AND
NURSING, HOLLIS OPERATING CO., LLC d/b/a
HOLLISWOOD CENTER FOR REHABILITATION
AND HEALTHCARE, SCHNUR OPERATIONS
ASSOCIATES LLC d/b/a MARTINE CENTER FOR
REHABILITATION AND NURSING, LIGHT
PROPERTY HOLDINGS ASSOCIATES LLC,
DELAWARE REAL PROPERTY ASSOCIATES
LLC, HOLLIS REAL ESTATE CO., LLC, LIGHT
OPERATIONAL HOLDINGS ASSOCIATES LLC,
LIGHT PROPERTY HOLDING II ASSOCIATES
LLC, CENTERS FOR CARE LLC d/b/a CENTERS
HEALTH CARE, CFSC DOWNSTATE, LLC, BIS
FUNDING CAPITAL LLC, SKILLED STAFFING,
LLC, KENNETH ROZENBERG, DARYL
HAGLER, BETH ROZENBERG, JEFFREY
SICKLICK, REUVEN KAUFMAN, LEO LERNER,
AMIR ABRAMCHIK, DAVID GREENBERG,
ELLIOT KAHAN, SOL BLUMENFELD, ARON
GITTLESON, AHARON LANTZITSKY,
JONATHAN HAGLER, and MORDECHAI “MOTI”
HELLMAN,
Respondents.
PLEASE TAKE NOTICE that attached as Exhibit A is a true and correct copy of the
Amended Order of the Supreme Court, New York County (Crane, J.S.C.), dated August 3, 2023,
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08/06/2023
and entered on August 4, 2023 (Dkt. No. 760) in the office of the New York County Clerk, located
at 60 Centre Street, New York, New York 10007.
August 6, 2023
New York, New York
GANFER SHORE LEEDS & ZAUDERER LLP QUINN EMANUEL URQUHART
Mark C. Zauderer, Esq. & SULLIVAN, LLP
360 Lexington Avenue Manisha M. Sheth, Esq.
New York, New York 10017 Marc L. Greenwald, Esq.
(212) 922-9250 Joanna E. Menillo, Esq.
51 Madison Avenue, 22nd Floor
FRIED, FRANK, HARRIS, SHRIVER New York, NY 10010
& JACOBSON LLP (212) 849-7000
Robin A. Henry, Esq.
Ilan Graff, Esq. CENTRICITY LAW PLLC
One New York Plaza Motty Shulman, Esq.
New York, New York 10004 442 5th Avenue, Suite 2352
(212) 859-8000 New York, New York 10018
(646) 580-1230
Attorneys for Respondents
VIA NYSCEF
Todd A. Pettigrew
One Blue Hill Plaza
Pearl River, NY 10965
Konrad F. Payne
Logan Gowdy
28 Liberty Street
New York, NY 10005
Emily L. Auletta
The Capitol
Albany, NY 12224
Counsel for Petitioner
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EXHIBIT A
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I
iJ
SUPREME COURTOF THE STATE OFNEW YORK
COUNTY OF NEW YORK
I
jl
' 'J>EQ!!LE OF THE STATE OF NEW YORK,
, l,yLETITIA JAMES, Attorney General
,,oftM!State of New York,
I
Petitioner, Index No. 451549/2023
AMENDED
-~st- ORDE~
I ?A1)R4HAf.fOPERATIC>NS ASS0CIA TES
LLC d/b/a BETH ABRAHAM CENTER
FOR REHABILITATION ANO NURSING,.
DELAWARB OPEIV{J'IONS ASSOCIATES LLC
dlbla BUFFALO CERl'ER FOR REHABILITATION
,AND NURSING, HOLLIS OPJ'£RATINGCO., LLC
d/bla HOLLIS WOOD CENTER FORREHABll.,ITATIQN
AND NURSING, SCHNUR OPERATIONS
ASSOCIATES LLC d/b/a MARTINE
CENTER FORREHABILITAUONANO NURSING,
LIGHT PROPERTY HOLDINGS ASSOCIATES LLC,
DELAWARE REAL PROPERTY ASSOCIATES LLC,
HOLLIS REAL ESTATE CO. LLC~
LIGHT OPERATIONAL HOLDINGS ASSOCIATES LLC,
LIGHT PROPERTY HOLDINGS U ASSOClATES LLC.
CENTERS FOR CARE LLC d/b/a CENTERS HEALTH CARE,
CFSC DOWNSTATE, LLC, BIS FUNDIN(l CAPITAL LLC,
SKILLED STAFFING, LLC, KENNETH ROZENBERG,
DARYL HAGLER. BETH ROZENBERG, JEFFREYSICKLICK,
LEO LERNER. REUVEN KAUFMAN, AMIR ABltAMCHIK,
DAVID GREEJ',lBERG, ELLIOT KAHAN.SOL Btll).{ENFEtP,
A,RON GITI'LESON, AHARONLANTZITSK.Y, .
JONATHAN HAGLER. and MORDECHAI •~MOTI" HELLMAN,
Re$pondents~ ..
__.~..,:..--------------~-~.;;~------~--~~•·----~X:
It is hereby ORDERED as follows:
Finamial Prohibitions
l) Re$l>(>nden,ts will not :file falseWand/or misleading CQst Reports, l'elating ·t6 the
Nursing Homes.
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2) Respondents will nQtllke;ilUY draws or distributions from Im, Numng Homes.
3) Respondents will not make any payments otcause any payments to be mad~, either
directly or indirectly, from . the Nursing Homes to OFSC;ltlownstate, LLC, BIS Funding Capi~f
LLO pr Skilled Staffing.LLC (collecti.vdy referred to :hemi,ti:js ·~elated Party Vendors").
4) Respondents wil1 not transfer or cause to be transferred, either directly or indirectly,
any assets from the Nursing Homes to Related Party Vendors.
S) Respondents will notincteascHhe·rate at which Related Parties!at,reornpensated.
. . .
6) Respondents will not obtain, receive~ convert, and/or ·dispose 6f Medicaid funds,
directly or indirectly. to which they are.notet'ltitled; by causing the Nursing Homes tor
a) ·,aysalaries to individtndsfot uno show'; positipnsand/or for hoUNthey did not
work;
b) Transfer funds to Related, Parties for goods/services that were notprovided;
c) Pay rent to Related Party landlords in excess of such landlords1 debt service
amount plus five peroent (5%);
d) Repay debts or loans issued fpr no value;
e) Transfer funds in the':tomt·ofwithdrawals to any.owners and/or tnembers; and
f) Loan or transfer funds to ·other nursing homes.
1As di$pll$$ed below, Nursing Hotu¢S are required. to fileCostlleports with DOH. Th@ CostReport and the
instructions thereto also require, at ,several poinu;, the di$closuto of "related com~ies"l...-eompanies with
which the Operator has "Non-Arm's Length Attangements,"as defined by Schedule f6 ofthe Cost Reports:
An arrangement between the operator of a facility and an organization related to the operator by
common ownership lilii or control for the fumishing of services, facilities, or supplies;
An arrangement where there is a family relationship between the operator and the
organization, and where sem~.Jacilities, or'supplies .~• furnished and in insfances
where the operator any
the organi1.lltictn are involved in other busill¢$S;arrangement.
11trougf.tnut'this (nder, a compant·that meets the aoove·&mfdtion: will be referred to as 11 i~Related Pu.yr'
· . :.:'.", ;Qd multiple such ®mpanies. as "Related. :Pat'®$/'
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PM INDEX NO.
INDEX NO. 451549/2023
451549/2023
NYSCEF DOC.
NYSCEF DOC. NO.
NO. 763
760
762 RECEIVED NYSCEF:
RECEIVED NYSCEF: 08/08/2023
08/04/2023
08/06/2023
Jadependent Financial Monitor
7) Within S days 0£:the date. ofthis Ord~rlosporidents shall retain an lmk~t, .
. .F'il'i8itcial MoAitot("IF'M;') to verifr ~dents' compliance with all le®$ of:this Order.
8) Respondents shall $el~t the IFM from one of the following potential candidates
provided by MFCU:
• Elyse Ruzow, .llU1-Qw& Ass®jates
• Robert H. Silberittg:(T&M, USA, LLC)
9) The IFM will have the powers. 4escribed herein until and unless this, Onler is,
$Uperseded by a subsequent Order of thii;;Cburl. The IFM may retain additional: personnel, within
reason, including~ journals;
b) A list,ofeach individual,ot'eritity listed on the records in p~agraph l3(a)'that
is a Related Party.
14) Within five ($)business days .ofthe dafe':of'this Order, R~nd~ts shall provide
to the IFM the.tecords specifiedin patUgtaph 13 for the ninety (90) days preceding this Order.
15) Upon request, the IFM shall receive suppQ~ documentation· from Respondents
regarding any transaction between a Ntlmng tlome and a RelatedP~y, including but not limited
to invoices., conttacts, and evidence of goods or services provided. Respondents shall wmply·with
such_tequests,within five (S)buamess days.
16) · Upon request,theIFM shallbeptUvided with access to individuals with knowledge.
about any specified transaction between a Nursing Horpe and ·•8.· Related Party. The IFM shall
specify the transactio11 ounmsactions about which the If'M is seeking infonnatioa, Respondeffls. ·
shall comply with such requests within•five (SJ business days.
17) The IFM shall determine for each transaction between a. Nursing Ht')me and ·a
·Relllted Party whether the transfer is fraudulent or otherwise bl Violation of 10 NYCRR § 400.4; ··
18 NYCRR §'515.2; and/ot Executive Law§ 63(12).
18) Report to the Court. ThelFM shall notify the Co~rt, copying Petitioner mu:i'
Responden~:aud attaching any relevant documen~on, when any of the following occurs:
a) The IFM determines that i transaction between a Nursing Home and a Related
Party is fraudulent or in violation of law,
bJ Respondents·,:efi,Jse or fail to provide suppQrtmg documentation ot access to
individuals with knowledge of a transaction withift, five (5) business days, or
4
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FILED: NEW
FILED: NEW YORK
YORK COUNTY
COUNTY CLERK
CLERK 08/06/2023
08/04/2023 10:15
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08:47 AM
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451549/2023
NYSCEF DOC.
NYSCEF DOC. NO.
NO. 763
760
762 RECEIVED NYSCEF:
RECEIVED NYSCEF: 08/08/2023
08/04/2023
08/06/2023
c) Respondents cause· \the Nursing Homes to make transfers in violation .of
paragraph 6, abnve.
19) Violations ofthis Order.· In. the event thattherlFMreports a violation of this Order
tQ 'the Court as set forth in paragraph f1{the Court shall determine whether Respondents have
violated this Order. Upon a determination by the Court that Respondents ha~,vfolated thi~ Order,
,the Court shall otdet Respondents:trJtehnn any impropetlf·~ received, con~ ~or·
disposed of funds to the Nursing Homesy .,,sJtatUmpose any appropriate sanction .determined by
the Court, or any such other relief thatthbrCourl deems proper.
20) Obligations for the Nur.lif!II Homes. The Nursing H911,te$ shall mtly and promptly
cooperate with theJFMand shall ensurc.,-theN\il'Sing Romes~ officers, employ~:andagents
fully and promptly cooperate with the IFM.
21) Funding of IFM's Expenses, including impleme11ttJfion of Recommendations.
Respondents shall:
a)> .Pay for the reasonable ·cost of, and the reasonable e,rpenses incurreq by~ the
IFM in connection with this Order, including but not limited to labor costs. (direct ·
and· indirect); consultant''and
. subcontractor C()$t$;: materials costs (direct
,
and
indirect); and other di~ct costs (travel, othertttiscelfa.neous); and
b) Pay the lfM's invoices within 30 days of submission to the. Nursing Homes
and/or Related Party Vendors by the IFM ..
Z2) The IFM shall. charge a ~ e ·amount for its ree, and· expenses, and shall
submitmootbly invoicesto'Respondents, by¢tnailii,asdescribedin1l6(b),;w,ithareasonableleve1
ofdetail reflecting all key category costs billed.
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FILED: NEW
FILED: NEW YORK
YORK COUNTY
COUNTY CLERK
CLERK 08/06/2023
08/04/2023 10:15
08/06/2023 11:59 PM
08:47 AM
PM INDEX NO.
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451549/2023
NYSCEF DOC.
NYSCEF DOC. NO.
NO. 763
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762 RECEIVED NYSCEF:
RECEIVED NYSCEF: 08/08/2023
08/04/2023
08/06/2023
23) Nothing in this order shaUpreclude R~ndents from objecting to a portion oftbe
IFM' s fees,. being ~onable or txeessive.
24) Respondents shall not fund the .expenses 'Set forth herein: with Medicaid pay.meats
macle to any other n\ttSing home individually or partl}"'(Jwned t,y any of the R,ospondents. This
prQ~tJniis•subject to Gb:ange upon a sho,~',J:iom the AG as to diff~. sources of funding.
j 25l Any IFM action, inaction, and/or report to the Court shall not be admissible by any
Party to prove or disprove the validity or~ount ofa disputed claim, or to prove or dispro¥,e, the
appropriateness of atrarisaction in any~untmg.
l
26) Any notices ·pursuantto this:()tder shall be in writing and shall be sent by email, as
follows:
a) TO PETITIONER: MFCJJNotices@ag.ny.gov;
b) TO RESJ-lONDENTS:
Motty 'Shtilinan, Centricitytaw PLLC
m§@centiicitylepl.com
Manisha M. ShethJ Quinn Emanuel Urquhart & SrtlUv~ LLP
manish3§~uinnegmnuel.oom
c) TO THE AOMINISTAATQR:$:
i) Beth Abraham Center: Saul Silbermintz -
SSilbermi11tz@bethabrahamcen:ter.n~;.
ii) ·Buffalo Center; lzey'Qvinson ·~·Ilevinson@buffa1onursing.net;
iii) Holliswood Cente.t~ Dovid Liff - Dtiff@bolliswood.net; and.
iv) M~:Center: Sam' 'Jsfllik, ... 1iJaak@mariJnecenter.net;
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FILED: NEW YORK COUNTY CLERK 08/06/2023 10:15 PM INDEX NO. 451549/2023 NYSCEF DOC. NO. 763 RECEIVED NYSCEF: 08/08/2023 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK PEOPLE OF THE STATE OF NEW YORK by LETITIA JAMES, Attorney General of the State of New York, Petitioner, v. ABRAHAM OPERATIONS ASSOCIATES LLC d/b/a BETH ABRAHAM CENTER FOR REHABILITATION AND NURSING, DELAWARE OPERATIONS ASSOCIATES LLC d/b/a BUFFALO CENTER FOR REHABILITATION AND NURSING, HOLLIS OPERATING CO., LLC d/b/a HOLLISWOOD CENTER FOR REHABILITATION AND HEALTHCARE, SCHNUR OPERATIONS Index No. 451549/2023 ASSOCIATES LLC d/b/a MARTINE CENTER I.A.S. Part 60 FOR REHABILITATION AND NURSING, (Crane, J.) LIGHT PROPERTY HOLDINGS ASSOCIATES LLC, DELAWARE REAL PROPERTY ASSOCIATES LLC, HOLLIS REAL ESTATE AMENDED NOTICE OF APPEAL CO., LLC, LIGHT OPERATIONAL HOLDINGS ASSOCIATES LLC, LIGHT PROPERTY HOLDING II ASSOCIATES LLC, CENTERS FOR CARE LLC d/b/a CENTERS HEALTH CARE, CFSC DOWNSTATE, LLC, BIS FUNDING CAPITAL LLC, SKILLED STAFFING, LLC, KENNETH ROZENBERG, DARYL HAGLER, BETH ROZENBERG, JEFFREY SICKLICK, REUVEN KAUFMAN, LEO LERNER, AMIR ABRAMCHIK, DAVID GREENBERG, ELLIOT KAHAN, SOL BLUMENFELD, ARON GITTLESON, AHARON LANTZITSKY, JONATHAN HAGLER, and MORDECHAI “MOTI” HELLMAN, Respondents. 1 of 17 FILED: NEW YORK COUNTY CLERK 08/06/2023 10:15 PM INDEX NO. 451549/2023 NYSCEF DOC. NO. 763 RECEIVED NYSCEF: 08/08/2023 PLEASE TAKE NOTICE that Respondents1 hereby appeal to the Appellate Division of the Supreme Court, First Department, from the Amended Order (NYSCEF 760, amending NYSCEF 7462) of the Supreme Court, New York County (Crane, J.S.C.) dated August 3, 2023, and entered in the Office of the County Clerk, New York County, on August 4, 2023, and from each and every part thereof. A copy of the Amended Order served with the Notice of Entry on August 6, 2023 (NYSCEF 762), is annexed hereto, and Respondents’ informational statement is filed herewith. The Corrected Notice of Entry of NYSCEF 746 (NYSCEF 750) is filed together with this Amended Notice of Appeal as Exhibit A. 1 Respondents are Abraham Operations Associates LLC d/b/a Beth Abraham Center for Rehabilitation and Nursing; Delaware Operations Associates LLC d/b/a Buffalo Center for Rehabilitation and Nursing; Hollis Operating Co., LLC d/b/a Holliswood Center for Rehabilitation and Healthcare; Schnur Operations Associates LLC d/b/a Martine Center for Rehabilitation and Nursing; Light Property Holdings Associates LLC; Delaware Real Property Associates LLC, Hollis Real Estate Co. LLC; Light Operational Holdings Associates LLC; Light Property Holdings II Associates LLC; Centers for Care LLC d/b/a Centers Health 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; and Mordechai “Moti” Hellman. 2 The Amended Order, NYSCEF 760, corrected a typographical error in the original Order, NYSCEF 746 at page 2 footnote 2, such that the definition of “Related Parties” mirrors the actual definition of that term in Schedule 16 of the Cost Reports. See Letters from Petitioner and Respondents to the Court, NYSCEF 753, 755 (describing and acknowledging the mistake). 2 of 17 FILED: NEW YORK COUNTY CLERK 08/06/2023 10:15 PM INDEX NO. 451549/2023 NYSCEF DOC. NO. 763 RECEIVED NYSCEF: 08/08/2023 Dated: August 8, 2023 Respectfully submitted, New York, New York GANFER SHORE LEEDS & ZAUDERER LLP QUINN EMANUEL URQUHART Mark C. Zauderer, Esq. & SULLIVAN, LLP 360 Lexington Avenue Manisha M. Sheth, Esq. New York, New York 10017 Marc L. Greenwald, Esq. (212) 922-9250 Joanna E. Menillo, Esq. 51 Madison Avenue, 22nd Floor FRIED, FRANK, HARRIS, SHRIVER New York, NY 10010 & JACOBSON LLP (212) 849-7000 Robin A. Henry, Esq. Ilan Graff, Esq. CENTRICITY LAW PLLC One New York Plaza Motty Shulman, Esq. New York, New York 10004 442 5th Avenue, Suite 2352 (212) 859-8000 New York, New York 10018 (646) 580-1230 Attorneys for Respondents VIA NYSCEF Todd A. Pettigrew One Blue Hill Plaza Pearl River, NY 10965 Konrad F. Payne Logan Gowdy 28 Liberty Street New York, NY 10005 Emily L. Auletta The Capitol Albany, NY 12224 Counsel for Petitioner 3 of 17 FILED: NEW YORK COUNTY CLERK 08/06/2023 10:15 PM INDEX NO. 451549/2023 NYSCEF DOC. NO. 763 RECEIVED NYSCEF: 08/08/2023 Supreme Court of the State of New York Appellate Division: First Judicial Department Informational Statement (Pursuant to 22 NYCRR 1250.3 [a]) - Civil Case Title: Set forth the title of the case as it appears on the summons, notice of petition or order to For Court of Original Instance show cause by which the matter was or is to be commenced, or as amended. PEOPLE OF THE STATE OF NEW YORK by LETITIA JAMES, Attorney General of the State of New York, Petitioner Date Notice of Appeal Filed - against - ABRAHAM OPERATIONS ASSOCIATES LLC dba BETH ABRAHAM CENTER FOR REHABILITATION AND NURSING et al., For Appellate Division Respondents. Case Type Filing Type ܆Civil Action ܆CPLR article 78 Proceeding ܆Appeal ܆Transferred Proceeding ܆CPLR article 75 Arbitration ܆Special Proceeding Other ܆Original Proceedings ܆CPLR Article 78 Action Commenced under CPLR 214-g ܆Habeas Corpus Proceeding ܆CPLR Article 78 ܆Executive Law § 298 ܆Eminent Domain ܆ CPLR 5704 Review ܆Labor Law 220 or 220-b ܆Public Officers Law § 36 ܆Real Property Tax Law § 1278 Nature of Suit: Check up to three of the following categories which best reflect the nature of the case. ܆Administrative Review ܆Business Relationships ܆Commercial ܆Contracts ܆Declaratory Judgment ܆Domestic Relations ܆Election Law ܆Estate Matters ܆Family Court ܆Mortgage Foreclosure ܆Miscellaneous ܆Prisoner Discipline & Parole ܆Real Property ܆Statutory ܆Taxation ܆Torts (other than foreclosure) Informational Statement - Civil 4 of 17 FILED: NEW YORK COUNTY CLERK 08/06/2023 10:15 PM INDEX NO. 451549/2023 NYSCEF DOC. NO. 763 RECEIVED NYSCEF: 08/08/2023 Appeal Paper Appealed From (Check one only): If an appeal has been taken from more than one order or judgment by the filing of this notice of appeal, please indicate the below information for each such order or judgment appealed from on a separate sheet of paper. ܆Amended Decree ܆Determination ܆Order ܆Resettled Order ܆Amended Judgement ܆Finding ܆Order & Judgment ܆Ruling ܆Amended Order ■ ܆Interlocutory Decree ܆Partial Decree ܆Other (specify): ܆Decision ܆Interlocutory Judgment ܆Resettled Decree ܆Decree ܆Judgment ܆Resettled Judgment Court: Supreme Court County: New York Dated: 08/03/2023 Entered: 08/04/2023 Judge (name in full): Melissa A. Crane Index No.: 451549/2023 Stage: ܆Interlocutory ܆Final ܆Post-Final ■ Trial: ܆Yes ܆No If Yes: ܆Jury ܆Non-Jury ■ Prior Unperfected Appeal ĂŶĚZĞůĂƚĞĚĂƐĞInformation Are any appeals arising in the same action or proceeding currently pending in the court? ■ Yes տ No տ If Yes, please set forth the Appellate Division Case Number assigned to each such appeal. 2023-08350, 2023-08351, 2023-08352 Where appropriate, indicate whether there is any related action or proceeding now in any court of this or any other jurisdiction, and if so, the status of the case: Original Proceeding Commenced by: ܆Order to Show Cause ܆Notice of Petition ܆Writ of Habeas Corpus Date Filed: Statute authorizing commencement of proceeding in the Appellate Division: Proceeding Transferred Pursuant to CPLR 7804(g) Court: Choose Court County: Choose County Judge (name in full): Order of Transfer Date: CPLR 5704 Review of Ex Parte Order: Court: Choose Court County: Choose County Judge (name in full): Dated: Description of Appeal, Proceeding or Application and Statement of Issues Description: If an appeal, briefly describe the paper appealed from. If the appeal is from an order, specify the relief requested and whether the motion was granted or denied. If an original proceeding commenced in this court or transferred pursuant to CPLR 7804(g), briefly describe the object of proceeding. If an application under CPLR 5704, briefly describe the nature of the ex parte order to be reviewed. This is an appeal from the Amended Order (NYSCEF Doc. No. 760) (correcting a typographical error in NYSCEF Doc. No. 746 at 2 n.2, so that the definition of "Related Parties" mirrors the actual definition of that term in Schedule 16 of the Cost Reports) of the Supreme Court of the State of New York, County of New York (Crane, J.S.C.) dated August 3, 2023, and entered in the Office of the County Clerk, New York County, on August 4, 2023, and from each and every part thereof. Informational Statement - Civil 5 of 17 FILED: NEW YORK COUNTY CLERK 08/06/2023 10:15 PM INDEX NO. 451549/2023 NYSCEF DOC. NO. 763 RECEIVED NYSCEF: 08/08/2023 Issues: Specify the issues proposed to be raised on the appeal, proceeding, or application for CPLR 5704 review͕ƚŚĞŐƌŽƵŶĚƐ ĨŽƌƌĞǀĞƌƐĂů͕ŽƌŵŽĚŝĨŝĐĂƚŝŽŶƚŽďĞĂĚǀĂŶĐĞĚĂŶĚƚŚĞƐƉĞĐŝĨŝĐƌĞůŝĞĨƐŽƵŐŚƚŽŶĂƉƉĞĂů͘ The Amended Order (NYSCEF Doc. No. 760) amended NYSCEF Doc. No. 746 (Order imposing an independent financial monitor on Respondents-Appellants) only insofar as it corrected typographical errors in the definition of "Related Parties" as set forth on page 2, footnote 2. Just as with NYSCEF Doc. No. 746, Respondents-Appellants intend to raise the following issues, without limitation: 1. The Court directed Centers to retain an unnecessary Independent Financial Monitor (“IFM”) with invasive and disruptive powers over Respondents-Appellants’ records, staff, and facilities akin to that of a receiver—as well as sweeping investigative powers—by Thursday, August 3. Not only does the financial monitor present a disruptive interference to Centers’ business, the monitor is wholly unnecessary given the financial assurances that Centers offered. 2. Second, the Supreme Court granted the AG access to the reports the monitors would create. This unprecedented access is wholly unnecessary because such access to the IFM’s reports will allow the AG to pierce privileges and gain information that it could not lawfully gain during the normal course of discovery. 3. Third, the Decision and Order justified the imposition of financial prohibitions that are so vaguely defined that they threaten Centers’ ability to continue to operate. Respondents-Appellants seek to modify the Order (NYSCEF Doc. No. 760) by striking Paragraphs 5–26. Party Information Instructions: Fill in the name of each party to the action or proceeding, one name per line. If this form is to be filed for an appeal, indicate the status of the party in the court of original instance and his, her, or its status in this court, if any. If this form is to be filed for a proceeding commenced in this court, fill in only the party’s name and his, her, or its status in this court. No. Party Name Original Status Appellate Division Status 1 PEOPLE OF THE STATE OF NEW YORK by LETITIA JAMES, Attorney General of the State of New York Petitioner Respondent 2 ABRAHAM OPERATIONS ASSOCIATES LLC dba BETH ABRAHAM CENTER FOR REHABILITATION AND NURSING et al. Respondent Appellant 3 ABRAHAM OPERATIONS ASSOCIATES LLC d/b/a BETH ABRAHAM CENTER FOR REHABILITATION AND NURSING Respondent Appellant 4 DELAWARE OPERATIONS ASSOCIATES LLC d/b/a BUFFALO CENTER FOR REHABILITATION AND NURSING Respondent Appellant 5 HOLLIS OPERATING CO., LLC d/b/a HOLLISWOOD CENTER FOR REHABILITATION AND HEALTHCARE Respondent Appellant 6 SCHNUR OPERATIONS ASSOCIATES LLC d/b/a MARTINE CENTER FOR REHABILITATION AND NURSING Respondent Appellant 7 LIGHT OPERATIONAL HOLDINGS ASSOCIATES LLC Respondent Appellant 8 CENTERS FOR CARE LLC d/b/a CENTERS HEALTH CARE Respondent Appellant 9 SKILLED STAFFING, LLC Respondent Appellant 10 KENNETH ROZENBERG Respondent Appellant 11 BETH ROZENBERG Respondent Appellant 12 JEFFREY SICKLICK Respondent Appellant 13 LEO LERNER Respondent Appellant 14 REUVEN KAUFMAN Respondent Appellant 15 AMIR ABRAMCHIK Respondent Appellant 16 DAVID GREENBERG Respondent Appellant 17 ELLIOT KAHAN Respondent Appellant 18 SOL BLUMENFELD Respondent Appellant 19 ARON GITTLESON Respondent Appellant 20 AHARON LANTZITSKY and MORDECHAI “MOTI” HELLMAN Respondent Appellant Informational Statement - Civil 6 of 17 FILED: NEW YORK COUNTY CLERK 08/06/2023 10:15 PM INDEX NO. 451549/2023 NYSCEF DOC. NO. 763 RECEIVED NYSCEF: 08/08/2023 Attorney Information Instructions: Fill in the names of the attorneys or firms for the respective parties. If this form is to be filed with the notice of petition or order to show cause by which a special proceeding is to be commenced in the Appellate Division, only the name of the attorney for the petitioner need be provided. In the event that a litigant represents herself or himself, the box marked “Pro Se” must be checked and the appropriate information for that litigant must be supplied in the spaces provided. Attorney/Firm Name: Manisha M. Sheth / Quinn Emanuel Urquhart & Sullivan, LLP Address: 51 Madison Avenue, 22nd Floor City: New York State: NY Zip: 10010 Telephone No: 212-849-7000 E-mail Address: manishasheth@quinnemanuel.com Attorney Type: ܆Retained ܆Assigned ܆Government ܆Pro Se ܆Pro Hac Vice ■ Party or Parties RepresenteĚ(set forth party number(s) from table aboveͿ:3, 4, 5, 6, 7 Attorney/Firm Name: Marc L. Greenwald / Quinn Emanuel Urquhart & Sullivan, LLP Address: 51 Madison Avenue, 22nd Floor City: New York State: NY Zip: 10010 Telephone No: 212-849-7000 E-mail Address: marcgreenwald@quinnemanuel.com Attorney Type: ܆Retained ܆Assigned ܆Government ܆Pro Se ܆Pro Hac Vice ■ Party or Parties Represented (set forth party number(s) from table aboveͿ:3, 4, 5, 6, 7 Attorney/Firm Name: William B. Adams / Quinn Emanuel Urquhart & Sullivan, LLP Address: 51 Madison Avenue, 22nd Floor City: New York State: NY Zip: 10010 Telephone No: 212-849-7000 E-mail Address: williamadams@quinnemanuel.com Attorney Type: ܆Retained ܆Assigned ܆Government ܆Pro Se ܆Pro Hac Vice ■ Party or Parties Represented (set forth party number(s) from table aboveͿ: 3, 4, 5, 6, 7 Attorney/Firm Name: Robin A. Henry / Fried, Frank, Harris, Shriver & Jacobson LLP Address: One New York Plaza City: New York State: NY Zip: 10004 Telephone No: 212-859-8816 E-mail Address: robin.henry@friedfrank.com Attorney Type: ܆Retained ܆Assigned ܆Government ܆Pro Se ܆Pro Hac Vice ■ Party or Parties Represented (set forth party number(s) from table aboveͿ: 8-20 Attorney/Firm Name: Mark C. Zauderer / Ganfer Shore Leeds & Zauderer LLP Address: 360 Lexington Avenue City: New York State: NY Zip: 10017 Telephone No: 212-922-9250 E-mail Address: mzauderer@ganfershore.com Attorney Type: ܆Retained ܆Assigned ܆Government ܆Pro Se ܆Pro Hac Vice ■ Party or Parties Represented (set forth party number(s) from table aboveͿ: 8 Attorney/Firm Name: Todd Pettigrew / Office of the New York Attorney General Address: One Blue Hill Plaza City: Pearl River State: NY Zip: 10965 Telephone No: 845-732-7500 E-mail Address: Todd.Pettigrew@ag.ny.gov Attorney Type: ܆Retained ܆Assigned ܆Government ܆Pro Se ܆Pro Hac Vice ■ Party or Parties Represented (set forth party number(s) from table aboveͿ:1 Informational Statement - Civil 7 of 17 FILED: NEW FILED: NEW YORK YORK COUNTY COUNTY CLERK CLERK 08/06/2023 08/06/2023 10:15 08:47 PM PM INDEX NO. INDEX NO. 451549/2023 451549/2023 NYSCEF DOC. NYSCEF DOC. NO. NO. 763 762 RECEIVED NYSCEF: RECEIVED NYSCEF: 08/08/2023 08/06/2023 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK PEOPLE OF THE STATE OF NEW YORK by Index No. 451549/2023 LETITIA JAMES, Attorney General of the State of I.A.S. Part 60 New York, (Crane, J.) Petitioner, -against- NOTICE OF ENTRY ABRAHAM OPERATIONS ASSOCIATES LLC d/b/a BETH ABRAHAM CENTER FOR REHABILITATION AND NURSING, DELAWARE OPERATIONS ASSOCIATES LLC d/b/a BUFFALO CENTER FOR REHABILITATION AND NURSING, HOLLIS OPERATING CO., LLC d/b/a HOLLISWOOD CENTER FOR REHABILITATION AND HEALTHCARE, SCHNUR OPERATIONS ASSOCIATES LLC d/b/a MARTINE CENTER FOR REHABILITATION AND NURSING, LIGHT PROPERTY HOLDINGS ASSOCIATES LLC, DELAWARE REAL PROPERTY ASSOCIATES LLC, HOLLIS REAL ESTATE CO., LLC, LIGHT OPERATIONAL HOLDINGS ASSOCIATES LLC, LIGHT PROPERTY HOLDING II ASSOCIATES LLC, CENTERS FOR CARE LLC d/b/a CENTERS HEALTH CARE, CFSC DOWNSTATE, LLC, BIS FUNDING CAPITAL LLC, SKILLED STAFFING, LLC, KENNETH ROZENBERG, DARYL HAGLER, BETH ROZENBERG, JEFFREY SICKLICK, REUVEN KAUFMAN, LEO LERNER, AMIR ABRAMCHIK, DAVID GREENBERG, ELLIOT KAHAN, SOL BLUMENFELD, ARON GITTLESON, AHARON LANTZITSKY, JONATHAN HAGLER, and MORDECHAI “MOTI” HELLMAN, Respondents. PLEASE TAKE NOTICE that attached as Exhibit A is a true and correct copy of the Amended Order of the Supreme Court, New York County (Crane, J.S.C.), dated August 3, 2023, 1 1 of 8 of 17 10 FILED: NEW FILED: NEW YORK YORK COUNTY COUNTY CLERK CLERK 08/06/2023 08/06/2023 10:15 08:47 PM PM INDEX NO. INDEX NO. 451549/2023 451549/2023 NYSCEF DOC. NYSCEF DOC. NO. NO. 763 762 RECEIVED NYSCEF: RECEIVED NYSCEF: 08/08/2023 08/06/2023 and entered on August 4, 2023 (Dkt. No. 760) in the office of the New York County Clerk, located at 60 Centre Street, New York, New York 10007. August 6, 2023 New York, New York GANFER SHORE LEEDS & ZAUDERER LLP QUINN EMANUEL URQUHART Mark C. Zauderer, Esq. & SULLIVAN, LLP 360 Lexington Avenue Manisha M. Sheth, Esq. New York, New York 10017 Marc L. Greenwald, Esq. (212) 922-9250 Joanna E. Menillo, Esq. 51 Madison Avenue, 22nd Floor FRIED, FRANK, HARRIS, SHRIVER New York, NY 10010 & JACOBSON LLP (212) 849-7000 Robin A. Henry, Esq. Ilan Graff, Esq. CENTRICITY LAW PLLC One New York Plaza Motty Shulman, Esq. New York, New York 10004 442 5th Avenue, Suite 2352 (212) 859-8000 New York, New York 10018 (646) 580-1230 Attorneys for Respondents VIA NYSCEF Todd A. Pettigrew One Blue Hill Plaza Pearl River, NY 10965 Konrad F. Payne Logan Gowdy 28 Liberty Street New York, NY 10005 Emily L. Auletta The Capitol Albany, NY 12224 Counsel for Petitioner 2 2 of 9 of 17 10 FILED: NEW FILED: NEW YORK YORK COUNTY COUNTY CLERK CLERK 08/06/2023 08/06/2023 10:15 08:47 PM PM INDEX NO. INDEX NO. 451549/2023 451549/2023 NYSCEF DOC. NYSCEF DOC. NO. NO. 763 762 RECEIVED NYSCEF: RECEIVED NYSCEF: 08/08/2023 08/06/2023 EXHIBIT A 3 of 10 of 10 17 FILED: NEW NEW YORK YORK COUNTY COUNTY CLERK CLERK 08/06/2023 08/04/2023 10:15 08/06/2023 11:59 PM 08:47 AM PM INDEX NO. INDEX NO. 451549/2023 451549/2023 I FILED: NYSCEF DOC. NYSCEF DOC. NO. NO. 763 760 762 RECEIVED NYSCEF: RECEIVED NYSCEF: 08/08/2023 08/04/2023 08/06/2023 I iJ SUPREME COURTOF THE STATE OFNEW YORK COUNTY OF NEW YORK I jl ' 'J>EQ!!LE OF THE STATE OF NEW YORK, , l,yLETITIA JAMES, Attorney General ,,oftM!State of New York, I Petitioner, Index No. 451549/2023 AMENDED -~st- ORDE~ I ?A1)R4HAf.fOPERATIC>NS ASS0CIA TES LLC d/b/a BETH ABRAHAM CENTER FOR REHABILITATION ANO NURSING,. DELAWARB OPEIV{J'IONS ASSOCIATES LLC dlbla BUFFALO CERl'ER FOR REHABILITATION ,AND NURSING, HOLLIS OPJ'£RATINGCO., LLC d/bla HOLLIS WOOD CENTER FORREHABll.,ITATIQN AND NURSING, SCHNUR OPERATIONS ASSOCIATES LLC d/b/a MARTINE CENTER FORREHABILITAUONANO NURSING, LIGHT PROPERTY HOLDINGS ASSOCIATES LLC, DELAWARE REAL PROPERTY ASSOCIATES LLC, HOLLIS REAL ESTATE CO. LLC~ LIGHT OPERATIONAL HOLDINGS ASSOCIATES LLC, LIGHT PROPERTY HOLDINGS U ASSOClATES LLC. CENTERS FOR CARE LLC d/b/a CENTERS HEALTH CARE, CFSC DOWNSTATE, LLC, BIS FUNDIN(l CAPITAL LLC, SKILLED STAFFING, LLC, KENNETH ROZENBERG, DARYL HAGLER. BETH ROZENBERG, JEFFREYSICKLICK, LEO LERNER. REUVEN KAUFMAN, AMIR ABltAMCHIK, DAVID GREEJ',lBERG, ELLIOT KAHAN.SOL Btll).{ENFEtP, A,RON GITI'LESON, AHARONLANTZITSK.Y, . JONATHAN HAGLER. and MORDECHAI •~MOTI" HELLMAN, Re$pondents~ .. __.~..,:..--------------~-~.;;~------~--~~•·----~X: It is hereby ORDERED as follows: Finamial Prohibitions l) Re$l>(>nden,ts will not :file falseWand/or misleading CQst Reports, l'elating ·t6 the Nursing Homes. 1 41 of 11 of 10 of 7 17 FILED: NEW FILED: NEW YORK YORK COUNTY COUNTY CLERK CLERK 08/06/2023 08/04/2023 10:15 08/06/2023 11:59 PM 08:47 AM PM INDEX NO. INDEX NO. 451549/2023 451549/2023 NYSCEF DOC. NYSCEF DOC. NO. NO. 763 760 762 RECEIVED NYSCEF: RECEIVED NYSCEF: 08/08/2023 08/04/2023 08/06/2023 2) Respondents will nQtllke;ilUY draws or distributions from Im, Numng Homes. 3) Respondents will not make any payments otcause any payments to be mad~, either directly or indirectly, from . the Nursing Homes to OFSC;ltlownstate, LLC, BIS Funding Capi~f LLO pr Skilled Staffing.LLC (collecti.vdy referred to :hemi,ti:js ·~elated Party Vendors"). 4) Respondents wil1 not transfer or cause to be transferred, either directly or indirectly, any assets from the Nursing Homes to Related Party Vendors. S) Respondents will notincteascHhe·rate at which Related Parties!at,reornpensated. . . . 6) Respondents will not obtain, receive~ convert, and/or ·dispose 6f Medicaid funds, directly or indirectly. to which they are.notet'ltitled; by causing the Nursing Homes tor a) ·,aysalaries to individtndsfot uno show'; positipnsand/or for hoUNthey did not work; b) Transfer funds to Related, Parties for goods/services that were notprovided; c) Pay rent to Related Party landlords in excess of such landlords1 debt service amount plus five peroent (5%); d) Repay debts or loans issued fpr no value; e) Transfer funds in the':tomt·ofwithdrawals to any.owners and/or tnembers; and f) Loan or transfer funds to ·other nursing homes. 1As di$pll$$ed below, Nursing Hotu¢S are required. to fileCostlleports with DOH. Th@ CostReport and the instructions thereto also require, at ,several poinu;, the di$closuto of "related com~ies"l...-eompanies with which the Operator has "Non-Arm's Length Attangements,"as defined by Schedule f6 ofthe Cost Reports: An arrangement between the operator of a facility and an organization related to the operator by common ownership lilii or control for the fumishing of services, facilities, or supplies; An arrangement where there is a family relationship between the operator and the organization, and where sem~.Jacilities, or'supplies .~• furnished and in insfances where the operator any the organi1.lltictn are involved in other busill¢$S;arrangement. 11trougf.tnut'this (nder, a compant·that meets the aoove·&mfdtion: will be referred to as 11 i~Related Pu.yr' · . :.:'.", ;Qd multiple such ®mpanies. as "Related. :Pat'®$/' 2 52 of 12 of 10 of 7 17 FILED: NEW FILED: NEW YORK YORK COUNTY COUNTY CLERK CLERK 08/06/2023 08/04/2023 10:15 08/06/2023 11:59 PM 08:47 AM PM INDEX NO. INDEX NO. 451549/2023 451549/2023 NYSCEF DOC. NYSCEF DOC. NO. NO. 763 760 762 RECEIVED NYSCEF: RECEIVED NYSCEF: 08/08/2023 08/04/2023 08/06/2023 Jadependent Financial Monitor 7) Within S days 0£:the date. ofthis Ord~rlosporidents shall retain an lmk~t, . . .F'il'i8itcial MoAitot("IF'M;') to verifr ~dents' compliance with all le®$ of:this Order. 8) Respondents shall $el~t the IFM from one of the following potential candidates provided by MFCU: • Elyse Ruzow, .llU1-Qw& Ass®jates • Robert H. Silberittg:(T&M, USA, LLC) 9) The IFM will have the powers. 4escribed herein until and unless this, Onler is, $Uperseded by a subsequent Order of thii;;Cburl. The IFM may retain additional: personnel, within reason, including~ journals; b) A list,ofeach individual,ot'eritity listed on the records in p~agraph l3(a)'that is a Related Party. 14) Within five ($)business days .ofthe dafe':of'this Order, R~nd~ts shall provide to the IFM the.tecords specifiedin patUgtaph 13 for the ninety (90) days preceding this Order. 15) Upon request, the IFM shall receive suppQ~ documentation· from Respondents regarding any transaction between a Ntlmng tlome and a RelatedP~y, including but not limited to invoices., conttacts, and evidence of goods or services provided. Respondents shall wmply·with such_tequests,within five (S)buamess days. 16) · Upon request,theIFM shallbeptUvided with access to individuals with knowledge. about any specified transaction between a Nursing Horpe and ·•8.· Related Party. The IFM shall specify the transactio11 ounmsactions about which the If'M is seeking infonnatioa, Respondeffls. · shall comply with such requests within•five (SJ business days. 17) The IFM shall determine for each transaction between a. Nursing Ht')me and ·a ·Relllted Party whether the transfer is fraudulent or otherwise bl Violation of 10 NYCRR § 400.4; ·· 18 NYCRR §'515.2; and/ot Executive Law§ 63(12). 18) Report to the Court. ThelFM shall notify the Co~rt, copying Petitioner mu:i' Responden~:aud attaching any relevant documen~on, when any of the following occurs: a) The IFM determines that i transaction between a Nursing Home and a Related Party is fraudulent or in violation of law, bJ Respondents·,:efi,Jse or fail to provide suppQrtmg documentation ot access to individuals with knowledge of a transaction withift, five (5) business days, or 4 74 of 14 of 10 of 7 17 FILED: NEW FILED: NEW YORK YORK COUNTY COUNTY CLERK CLERK 08/06/2023 08/04/2023 10:15 08/06/2023 11:59 PM 08:47 AM PM INDEX NO. INDEX NO. 451549/2023 451549/2023 NYSCEF DOC. NYSCEF DOC. NO. NO. 763 760 762 RECEIVED NYSCEF: RECEIVED NYSCEF: 08/08/2023 08/04/2023 08/06/2023 c) Respondents cause· \the Nursing Homes to make transfers in violation .of paragraph 6, abnve. 19) Violations ofthis Order.· In. the event thattherlFMreports a violation of this Order tQ 'the Court as set forth in paragraph f1{the Court shall determine whether Respondents have violated this Order. Upon a determination by the Court that Respondents ha~,vfolated thi~ Order, ,the Court shall otdet Respondents:trJtehnn any impropetlf·~ received, con~ ~or· disposed of funds to the Nursing Homesy .,,sJtatUmpose any appropriate sanction .determined by the Court, or any such other relief thatthbrCourl deems proper. 20) Obligations for the Nur.lif!II Homes. The Nursing H911,te$ shall mtly and promptly cooperate with theJFMand shall ensurc.,-theN\il'Sing Romes~ officers, employ~:andagents fully and promptly cooperate with the IFM. 21) Funding of IFM's Expenses, including impleme11ttJfion of Recommendations. Respondents shall: a)> .Pay for the reasonable ·cost of, and the reasonable e,rpenses incurreq by~ the IFM in connection with this Order, including but not limited to labor costs. (direct · and· indirect); consultant''and . subcontractor C()$t$;: materials costs (direct , and indirect); and other di~ct costs (travel, othertttiscelfa.neous); and b) Pay the lfM's invoices within 30 days of submission to the. Nursing Homes and/or Related Party Vendors by the IFM .. Z2) The IFM shall. charge a ~ e ·amount for its ree, and· expenses, and shall submitmootbly invoicesto'Respondents, by¢tnailii,asdescribedin1l6(b),;w,ithareasonableleve1 ofdetail reflecting all key category costs billed. 85 of 15 of 10 of 7 17 FILED: NEW FILED: NEW YORK YORK COUNTY COUNTY CLERK CLERK 08/06/2023 08/04/2023 10:15 08/06/2023 11:59 PM 08:47 AM PM INDEX NO. INDEX NO. 451549/2023 451549/2023 NYSCEF DOC. NYSCEF DOC. NO. NO. 763 760 762 RECEIVED NYSCEF: RECEIVED NYSCEF: 08/08/2023 08/04/2023 08/06/2023 23) Nothing in this order shaUpreclude R~ndents from objecting to a portion oftbe IFM' s fees,. being ~onable or txeessive. 24) Respondents shall not fund the .expenses 'Set forth herein: with Medicaid pay.meats macle to any other n\ttSing home individually or partl}"'(Jwned t,y any of the R,ospondents. This prQ~tJniis•subject to Gb:ange upon a sho,~',J:iom the AG as to diff~. sources of funding. j 25l Any IFM action, inaction, and/or report to the Court shall not be admissible by any Party to prove or disprove the validity or~ount ofa disputed claim, or to prove or dispro¥,e, the appropriateness of atrarisaction in any~untmg. l 26) Any notices ·pursuantto this:()tder shall be in writing and shall be sent by email, as follows: a) TO PETITIONER: MFCJJNotices@ag.ny.gov; b) TO RESJ-lONDENTS: Motty 'Shtilinan, Centricitytaw PLLC m§@centiicitylepl.com Manisha M. ShethJ Quinn Emanuel Urquhart & SrtlUv~ LLP manish3§~uinnegmnuel.oom c) TO THE AOMINISTAATQR:$: i) Beth Abraham Center: Saul Silbermintz - SSilbermi11tz@bethabrahamcen:ter.n~;. ii) ·Buffalo Center; lzey'Qvinson ·~·Ilevinson@buffa1onursing.net; iii) Holliswood Cente.t~ Dovid Liff - Dtiff@bolliswood.net; and. iv) M~:Center: Sam' 'Jsfllik, ... 1iJaak@mariJnecenter.net; 6 96 of 16 of 10