Flophouse landlord arrested for allegedly taking $2M in Medicaid kickbacks

Yury Baumblit and his wife, Rimma, face up to 15 years if convicted

New York /
Apr.April 14, 2016 09:30 AM

A notorious Brighton Beach landlord, who was investigated for conditions at his cramped flophouses known as three-quarter homes, was arrested Wednesday for allegedly receiving $2 million in Medicaid kickbacks.

Yury Baumblit and his wife, Rimma, were arraigned in Kings County Criminal Court on felony charges of second-degree grand larceny and second-degree money laundering.

Baumblit is accused of forcing tenants at his three-quarter homes to go to certain substance-abuse treatment providers, the New York Times reported. The providers, in turn, paid $2 million in Medicaid kickbacks to companies run by the Baumblits, an assistant attorney general, Megan Friedland, said at court on Wednesday.

The Baumblits’ five-bedroom, 5,200-square-foot home in Brighton Beach features chandeliers, a bar and a swimming pool, and the couple owned expensive furs and jewelry, Friedland said, the Times reported.

“There’s an ostentatious lifestyle that’s being paid for by the state, in essence,” Friedland said.

A lawyer for the Baumblits said his clients were the victims of a “witch hunt,” and “adamantly denies there have been kickbacks,” the newspaper reported.

So-called three-quarter homes are unregulated, which has led to crowded quarters often overrun with vermin. Poor people in need of treatment for substance abuse, the mentally ill, and homeless who did not want to use the city’s shelters use these homes.

The Baumblits have run many of these home since 2009 and last year faced criminal charges for illegally evicting tenants and were the focus of a Times’ investigation.

If convicted, the couple could face up to 15 years in prison. [NYT]Dusica Sue Malesevic


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
 Buckhead City Commitee's Bill White and Atlanta Mayor Andre Dickens (BEC, Getty)
Atlanta’s wealthiest – and whitest – neighborhood continues effort to secede
Atlanta’s wealthiest – and whitest – neighborhood continues effort to secede
Vicky Ward (CNN)
Vicky Ward breaks down New York State’s Trump investigation
Vicky Ward breaks down New York State’s Trump investigation
(iStock)
Cincinnati agency buys 200 rental homes, elbowing out investors
Cincinnati agency buys 200 rental homes, elbowing out investors
Lloyd's of London headquarters at Lime Street (Lloyd's of London/CC BY 2.5 - via Wikimedia Commons, iStock)
Lloyd’s of London may exit “Inside Out” home after three decades
Lloyd’s of London may exit “Inside Out” home after three decades
Michael Fulfree and Bianca D’Alessio of Nest Seekers International (Nest Seekers)
They can sell the Hamptons. But can they sell “Selling the Hamptons”?
They can sell the Hamptons. But can they sell “Selling the Hamptons”?
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...