Nursing Home Scam Spreads to Brooklyn
April 12, 2016 — Attorney General targets Rivington House seller in similar Bed-Stuy deal.
Allure Group, the for-profit nursing home company that flipped a Lower East Side AIDS hospice to luxury condo developers for a $72 million profit, has been subpoenaed for a similar shady deal in the Bedford-Stuyvesant section of Brooklyn.
State Attorney General Eric Schneiderman has issued subpoenas to determine whether the Allure Group misled state officials in its handling of a nonprofit Nostrand Avenue nursing home that it bought for $15.6 million, the Daily News reports. Three months after the sale, though Allure had promised to continue to run the facility as a nursing home, the contractor Park Premium Builders filed for a “full demolition” permit so it could erect a seven-story, 241-unit apartment building – none of it billed as affordable.
At the Rivington House AIDS hospice in Manhattan, Allure paid the city $16 million to lift a deed restriction that had required the property to remain a nonprofit care facility in perpetuity. The city and state are now investigating the lifting of that deed – and Allure’s $72 million profit that followed. Stay tuned.