On June 28, 2023 a
Exhibit,Appendix
was filed
involving a dispute between
People Of The State Of New York, By Letitia James, Attorney General Of The State Of New York,
and
Abraham Operations Associates Llc Dba Beth Abraham Center For Rehabilitation And Nursing,
Aharon Lantzitsky,
Amir Abramchik,
Aron Gittleson,
Beth Rozenberg,
Bis Funding Capital Llc,
Centers For Care Llc Dba Centers Health Care,
Cfsc Downstate Llc,
Daryl Hagler,
David Greenberg,
Delaware Operations Associates Llc Dba Buffalo Center For Rehabilitation And Nursing,
Delaware Real Property Associates Llc,
Elliot Kahan,
Hollis Operating Co Llc Dba Holliswood Center For Rehabilitation And Healthcare,
Hollis Real Estate Co Llc,
Jeffrey Sicklick,
Jonathan Hagler,
Kenneth Rozenberg,
Leo Lerner,
Light Property Holdings Ii Associates Llc,
Mordechai Moti Hellman,
Reuven Kaufman,
Schnur Operations Associates Llc Dba Martine Center For Rehabilitation And Nursing,
Skilled Staffing Llc,
Sol Blumenfeld,
for Commercial - Other - Commercial Division
in the District Court of New York County.
Preview
= YORK OUN Kk Dv INDEX NO. 451549/2023
NYSCEF BOC. NO. 824 RECEIVED NYSCEF: 03/01/2024
EXHIBIT E
INDEX NO. 451549/2023
NYSCEF DOC. NO. 824 RECEIVED NYSCEF: 03/01/2024
HINMAN
STRAUBm
ATTORNEYS AT LAW
121 State Street
ALBany, NEw York 12207-1693
TEL: 518-436-0751
Fax: 518-436-4751
E-MAIL: RECEPTION@HINMANSTRAUB.COM
Davio T. Luntz
E-mail; DLUNTZ@HINMANSTRAUB.COM
January 24, 2022
VIA EMAIL
William McClarnon, Esq. Hillary Chapman, Esq.
Special Assistant Attorney General Special Assistant Attorney General
Medicaid Fraud Control Unit Medicaid Fraud Control Unit
NYS Attorney General’s Office NYS Attorney General’s Office
One Blue Hill Plaza, Suite 1037 28 Liberty Street
Pearl River, NY 10965 New York, NY 10005
Re: Productions by Skilled Staffing, LLC in response to
October 29, 2021 Subpoena Duces Tecum
Dear Bill and Hillary:
As you know, we represent Skilled Staffing, LLC (“RCN”) with respect to the Subpoena
Duces Tecum addressed to RCN that was issued by the Office of the Attorney General Medicaid
Fraud Control Unit (*“MFCU”) dated October 29, 2021 (the “Subpoena”). On or about
November 15, 2021, before the return date of the Subpoena, we asserted a number of objections.
Subject to and without waiving the objections, Skilled Staffing produced a number of
documents, completing its production on January 21, 2022.
We write, in response to your telephone request, to provide detail about Skilled Staffing’s
response with respect to each category in Schedule “A” to the Subpoena. Our response follows.
We incorporate and restate all objections articulated in our November 15, 2021 letter. Many of
the requests are palpably improper. Nothing contained herein shall constitute a waiver of any
objection asserted by Skilled Staffing, or of its rights pursuant to CPLR 2304.
1 Organizational charts showing management, ownership structure, and reporting lines for
any employees, directors and officers of Skilled Staffing throughout the Relevant Period.
RESPONSE: Notwithstanding its objection to the relevance of this demand, Skilled Staffing has
reviewed its records and does not possess any documents responsive to this demand.
2 The following financial documents for Skilled Staffing throughout the Relevant Period:
A) Financial statements;
10
INDEX NO. 451549/2023
NYSCEF DOC. NO. 824 RECEIVED NYSCEF: 03/01/2024
HINMAN STRAUB P.C uanuary 24, 2022 Pace 2
B) General ledgers;
Cc) Cash disbursement journal;
D) Cash receipts journal;
E) Payroll journal;
F) Purchase journal.
RESPONSE: Skilled Staffing possesses certain records responsive to this demand.
Notwithstanding its objection to the relevance of this demand, Skilled Staffing is producing the
following records:
e Balance sheets for calendar years 2017, 2018, 2019, and 2020;
® General ledgers for calendar years 2017, 2018, 2019, and 2020; and
e Payroll registers for each Facility for calendar years 2018 and 2019, There is no payroll
register for these Facilities for other years.
Invoices issued by Skilled Staffing to Centers r any Facility for work performed for
Centers or any Facility during the Relevant Period.
RESPONSE: Skilled Staffing issued invoices to the Facilities during the Relevant Period, and
those in Skilled Staffing’s possession, custody or control have been produced. To the extent that
it may possess other invoices “issued” to “Centers”, Skilled Staffing objects to this demand as
not relevant to any legitimate investigative purpose based upon our understanding of the scope of
MFCU’s investigation.
4 Skilled Staffing’s tax returns throughout the Relevant Period.
RESPONSE: Skilled Staffing possesses these records but objects to their production inasmuch
as the records are not relevant to any legitimate investigative purpose based upon our
understanding of the scope of MFCU’s investigation, MFCU has made no strong showing of the
necessity of production of these records and the voluminous other demands in the subpoena are
substantial indicia that other sources exist from which information could be obtained (see
Abbene v Griffin, 208 AD2d 483 [2d Dept 1994}).
5 All contracts, agreements, amendments, or other writings in effect during the Relevant
Period, memorializing services performed by Skilled Staffing for Centers and/or each
Facility.
RESPONSE: Skilled Staffing objects to the relevance of this demand to the extent it seeks
documents concerning Centers. Notwithstanding its objection to the relevance of this demand,
Skilled Staffing has reviewed its records and does not possess any documents responsive to this
demand.
6 All punch detail or time cards in connection with services performed by Skilled Staffing
for Centers and each Facility.
RESPONSE; Skilled Staffing objects to the relevance of this demand to the extent it seeks
documents concerning Centers. Notwithstanding its objection to the relevance of this demand,
11
INDEX NO. 451549/2023
NYSCEF DOC. NO. 824 RECEIVED NYSCEF: 03/01/2024
HINMAN STRAUB P.C January 24, 2022 Pace, 3
Skilled Staffing has reviewed its records and produced any time cards in its possession from each
Facility.
7 All communications among individuals at Skilled Staffing, Centers and/or each Facility
regarding services provided by Skilled Staffing to Centers and each Facility.
RESPONSE: Notwithstanding its objection to this demand, Skilled Staffing has reviewed its
records and does not possess any responsive documents.
8 Any and all loan applications and agreements, including PPP loans, CARES Act funding
and PPE loans.
RESPONSE: Skilled Staffing possesses certain records but objects to their production inasmuch
as the records are not relevant to any legitimate investigative purpose based upon our
understanding of the scope of MFCU’s investigation. Rather, this demand is so starkly
overbroad and unduly burdensome as to amount to an “unbridled fishing expedition[]” (Slate v
State of New York, 267 AD2d 839, 841 [3d Dept 1999]).
9, All documents relating to Skilled Staffing’s efforts to obtain business from Centers and
each Facility, including but not limited to any requests for proposals from Centers and/or
each Facility, proposals or bids submitted by Skilled Staffing, and agreements between
Skilled Staffing and Centers and each Facility.
RESPONSE: Skilled Staffing ob, sts to this demand as duplicative of demand nos. 5 and 7,
above. Notwithstanding its obje on to this demand, Skilled Staffing has reviewed its records
and does not possess any responsive documents.
10, Documents sufficient to show the bank and account number for all bank accounts used by
Skilled Staffing during the Relevant Period, including but not limited to any and all
accounts from which Skilled Staffing’s expenses are paid or revenue deposited, mortgage
accounts, and investment accounts.
RESPONSE: Skilled Staffing possesses certain responsive records but objects to their
production inasmuch as the records are not relevant to any legitimate investigative purpose based
upon our understanding of the scope of MFCU’s investigation. Rather, this demand is so starkly
overbroad and unduly burdensome as to amount to an “unbridled fishing expedition[]” (Slate v
State of New York, 267 AD2d 839, 841 [3d Dept 1999).
LL. All contracts, agreements, amendments or other writings or documents during the
Relevant Period, memorializing the purchase, sale, take-over, and/or merger of Skilled
Staffing with Regional Care Network LLC,
RESPONSE: Notwithstanding its previously stated objections, Skilled Staffing does not possess
or control any documents responsive to this demand.
12
INDEX NO. 451549/2023
NYSCEF DOC. NO. 824 RECEIVED NYSCEF: 03/01/2024
HINMAN STRAUB P.C. JANUARY 24, 2022 Pace 4
12: All communications among individuals at Skilled Staffing, Centers and/or each Facility
regarding the purchase, sale, take-over, and/or merger of Skilled Staffing with Regional
Care Network LLC.
RESPONSE: Notwithstanding its previously stated objections, Skilled Staffing does not possess
or control any documents responsive to this demand.
We acknowledge that certain emails sent by individuals with “skilledstaffing.org”
addresses contained the statement “Please Note: We are excited to announce that we will be
merging with Regional Care Network by 1/1/20.” It is our understanding that this informal
wording was intended to smooth the transition from one agency to the other. In reality, there
was no merger or other purchase/sale transaction.
Skilled Staffing is an active business that provides certain services to the Facilities.
Skilled Staffing determined that it would exit the direct care staffing business in New York
effective on or around December 31, 2019. Individuals who had worked for Skilled Staffing
were given the opportunity to work for Regional Care Network LLC. Skilled Staffing did not
enter into any written agreement with Regional Care Network LLC concerning these matters.
This completes Skilled Staffing’s response to the Subpoena. Skilled Staffing has fully
cooperated with the reasonable, relevant demands in the Subpoena. We trust that this should
resolve this matter.
Very truly yours,
DTL:dbm
dsav T, Luntz
4894-0971-7258, v.2
13,
Preview
= YORK OUN Kk Dv INDEX NO. 451549/2023 NYSCEF BOC. NO. 824 RECEIVED NYSCEF: 03/01/2024 EXHIBIT E INDEX NO. 451549/2023 NYSCEF DOC. NO. 824 RECEIVED NYSCEF: 03/01/2024 HINMAN STRAUBm ATTORNEYS AT LAW 121 State Street ALBany, NEw York 12207-1693 TEL: 518-436-0751 Fax: 518-436-4751 E-MAIL: RECEPTION@HINMANSTRAUB.COM Davio T. Luntz E-mail; DLUNTZ@HINMANSTRAUB.COM January 24, 2022 VIA EMAIL William McClarnon, Esq. Hillary Chapman, Esq. Special Assistant Attorney General Special Assistant Attorney General Medicaid Fraud Control Unit Medicaid Fraud Control Unit NYS Attorney General’s Office NYS Attorney General’s Office One Blue Hill Plaza, Suite 1037 28 Liberty Street Pearl River, NY 10965 New York, NY 10005 Re: Productions by Skilled Staffing, LLC in response to October 29, 2021 Subpoena Duces Tecum Dear Bill and Hillary: As you know, we represent Skilled Staffing, LLC (“RCN”) with respect to the Subpoena Duces Tecum addressed to RCN that was issued by the Office of the Attorney General Medicaid Fraud Control Unit (*“MFCU”) dated October 29, 2021 (the “Subpoena”). On or about November 15, 2021, before the return date of the Subpoena, we asserted a number of objections. Subject to and without waiving the objections, Skilled Staffing produced a number of documents, completing its production on January 21, 2022. We write, in response to your telephone request, to provide detail about Skilled Staffing’s response with respect to each category in Schedule “A” to the Subpoena. Our response follows. We incorporate and restate all objections articulated in our November 15, 2021 letter. Many of the requests are palpably improper. Nothing contained herein shall constitute a waiver of any objection asserted by Skilled Staffing, or of its rights pursuant to CPLR 2304. 1 Organizational charts showing management, ownership structure, and reporting lines for any employees, directors and officers of Skilled Staffing throughout the Relevant Period. RESPONSE: Notwithstanding its objection to the relevance of this demand, Skilled Staffing has reviewed its records and does not possess any documents responsive to this demand. 2 The following financial documents for Skilled Staffing throughout the Relevant Period: A) Financial statements; 10 INDEX NO. 451549/2023 NYSCEF DOC. NO. 824 RECEIVED NYSCEF: 03/01/2024 HINMAN STRAUB P.C uanuary 24, 2022 Pace 2 B) General ledgers; Cc) Cash disbursement journal; D) Cash receipts journal; E) Payroll journal; F) Purchase journal. RESPONSE: Skilled Staffing possesses certain records responsive to this demand. Notwithstanding its objection to the relevance of this demand, Skilled Staffing is producing the following records: e Balance sheets for calendar years 2017, 2018, 2019, and 2020; ® General ledgers for calendar years 2017, 2018, 2019, and 2020; and e Payroll registers for each Facility for calendar years 2018 and 2019, There is no payroll register for these Facilities for other years. Invoices issued by Skilled Staffing to Centers r any Facility for work performed for Centers or any Facility during the Relevant Period. RESPONSE: Skilled Staffing issued invoices to the Facilities during the Relevant Period, and those in Skilled Staffing’s possession, custody or control have been produced. To the extent that it may possess other invoices “issued” to “Centers”, Skilled Staffing objects to this demand as not relevant to any legitimate investigative purpose based upon our understanding of the scope of MFCU’s investigation. 4 Skilled Staffing’s tax returns throughout the Relevant Period. RESPONSE: Skilled Staffing possesses these records but objects to their production inasmuch as the records are not relevant to any legitimate investigative purpose based upon our understanding of the scope of MFCU’s investigation, MFCU has made no strong showing of the necessity of production of these records and the voluminous other demands in the subpoena are substantial indicia that other sources exist from which information could be obtained (see Abbene v Griffin, 208 AD2d 483 [2d Dept 1994}). 5 All contracts, agreements, amendments, or other writings in effect during the Relevant Period, memorializing services performed by Skilled Staffing for Centers and/or each Facility. RESPONSE: Skilled Staffing objects to the relevance of this demand to the extent it seeks documents concerning Centers. Notwithstanding its objection to the relevance of this demand, Skilled Staffing has reviewed its records and does not possess any documents responsive to this demand. 6 All punch detail or time cards in connection with services performed by Skilled Staffing for Centers and each Facility. RESPONSE; Skilled Staffing objects to the relevance of this demand to the extent it seeks documents concerning Centers. Notwithstanding its objection to the relevance of this demand, 11 INDEX NO. 451549/2023 NYSCEF DOC. NO. 824 RECEIVED NYSCEF: 03/01/2024 HINMAN STRAUB P.C January 24, 2022 Pace, 3 Skilled Staffing has reviewed its records and produced any time cards in its possession from each Facility. 7 All communications among individuals at Skilled Staffing, Centers and/or each Facility regarding services provided by Skilled Staffing to Centers and each Facility. RESPONSE: Notwithstanding its objection to this demand, Skilled Staffing has reviewed its records and does not possess any responsive documents. 8 Any and all loan applications and agreements, including PPP loans, CARES Act funding and PPE loans. RESPONSE: Skilled Staffing possesses certain records but objects to their production inasmuch as the records are not relevant to any legitimate investigative purpose based upon our understanding of the scope of MFCU’s investigation. Rather, this demand is so starkly overbroad and unduly burdensome as to amount to an “unbridled fishing expedition[]” (Slate v State of New York, 267 AD2d 839, 841 [3d Dept 1999]). 9, All documents relating to Skilled Staffing’s efforts to obtain business from Centers and each Facility, including but not limited to any requests for proposals from Centers and/or each Facility, proposals or bids submitted by Skilled Staffing, and agreements between Skilled Staffing and Centers and each Facility. RESPONSE: Skilled Staffing ob, sts to this demand as duplicative of demand nos. 5 and 7, above. Notwithstanding its obje on to this demand, Skilled Staffing has reviewed its records and does not possess any responsive documents. 10, Documents sufficient to show the bank and account number for all bank accounts used by Skilled Staffing during the Relevant Period, including but not limited to any and all accounts from which Skilled Staffing’s expenses are paid or revenue deposited, mortgage accounts, and investment accounts. RESPONSE: Skilled Staffing possesses certain responsive records but objects to their production inasmuch as the records are not relevant to any legitimate investigative purpose based upon our understanding of the scope of MFCU’s investigation. Rather, this demand is so starkly overbroad and unduly burdensome as to amount to an “unbridled fishing expedition[]” (Slate v State of New York, 267 AD2d 839, 841 [3d Dept 1999). LL. All contracts, agreements, amendments or other writings or documents during the Relevant Period, memorializing the purchase, sale, take-over, and/or merger of Skilled Staffing with Regional Care Network LLC, RESPONSE: Notwithstanding its previously stated objections, Skilled Staffing does not possess or control any documents responsive to this demand. 12 INDEX NO. 451549/2023 NYSCEF DOC. NO. 824 RECEIVED NYSCEF: 03/01/2024 HINMAN STRAUB P.C. JANUARY 24, 2022 Pace 4 12: All communications among individuals at Skilled Staffing, Centers and/or each Facility regarding the purchase, sale, take-over, and/or merger of Skilled Staffing with Regional Care Network LLC. RESPONSE: Notwithstanding its previously stated objections, Skilled Staffing does not possess or control any documents responsive to this demand. We acknowledge that certain emails sent by individuals with “skilledstaffing.org” addresses contained the statement “Please Note: We are excited to announce that we will be merging with Regional Care Network by 1/1/20.” It is our understanding that this informal wording was intended to smooth the transition from one agency to the other. In reality, there was no merger or other purchase/sale transaction. Skilled Staffing is an active business that provides certain services to the Facilities. Skilled Staffing determined that it would exit the direct care staffing business in New York effective on or around December 31, 2019. Individuals who had worked for Skilled Staffing were given the opportunity to work for Regional Care Network LLC. Skilled Staffing did not enter into any written agreement with Regional Care Network LLC concerning these matters. This completes Skilled Staffing’s response to the Subpoena. Skilled Staffing has fully cooperated with the reasonable, relevant demands in the Subpoena. We trust that this should resolve this matter. Very truly yours, DTL:dbm dsav T, Luntz 4894-0971-7258, v.2 13,