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

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

TRD 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
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Michael Gianaris (Photography by Sasha Maslov)

The Closing: Michael Gianaris

The Closing: Michael Gianaris
Can eXp’s virtual world work in New York?

Can eXp’s virtual world work in New York?

Can eXp’s virtual world work in New York?
The Real Deal's E.B. Solomont and Brown Harris Stevens' CEO Bess Freedman

The Interview: Bess Freedman on how resi firms will look post-Covid

The Interview: Bess Freedman on how resi firms will look post-Covid
(Illustration by Sebastien Thibault)

Pension fund money is getting tangled in some controversial housing deals

Pension fund money is getting tangled in some controversial housing deals
Clockwise from top: Gary Barnett, Aby Rosen, Michael Stern, Jeff Blau, Ziel Feldman and Robert Gladstone (Illustration by Nazario Graziano)

Sizing up Manhattan’s condo crunch following a decade of boom and bust

Sizing up Manhattan’s condo crunch following a decade of boom and bust
arrow_forward_ios

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

Loading...