New York real estate investor Rubin Schron and real estate attorney Leonard Grunstein have been accused of taking $50 million in kickbacks from Omnicare, a pharmaceutical company that serves the nursing home companies they each head. Schron, who owns the Woolworth Building, and Grunstein, a partner at Troutman Sanders, were two-thirds of a group that covered up a $50 million payout they received from Omnicare that enabled the company to continue to provide services at Mariner Health Care and Sava Senior Care, according to a complaint filed today by the U.S. Department of Justice. In the cover-up scheme, the trio allegedly masked the money as a payment for Omnicare’s acquisition of a two-person Mariner business unit that was not worth nearly $50 million. Omnicare will be forced to pay $98 million to states and to the federal government to settle the Medicare and Medicaid fraud charges associated with the case. [Crain’s]
NY real estate bigwigs took $50M in kickbacks from pharma company, suit claims
New York /
Nov.November 04, 2009
08:50 AM
Related Articles
arrow_forward_ios

What office tenants pay at Witkoff & Cammeby’s Woolworth Building

Steve Roth slashes price on Montauk home once owned by Madoff

Contractor accuses Alchemy Properties of trying to damage reputation

Hedge fund manager arrested for fraud in Neiman Marcus bankruptcy

“Wolf of Wall Street” producer to forfeit $60M in 1MDB probe settlement

Former Turner Construction exec pleads guilty in bribery scheme

UWS condo caught up in bribery scandal tied to world’s smallest republic
arrow_forward_ios