Real estate investor faces suit from shareholders

Sign Up for the undefined Newsletter

Investor Rubin Schron, who last month settled with the U.S. Justice Department over an alleged $50 million kickbacks scheme with nursing home pharmacy Omnicare, used his CAM-Elm Company as a “personal piggy bank,” according to a derivative complaint from shareholders. The complaint alleges that Schron, who owns part of the Woolworth Building and 40 percent of a group that has a 26 percent stake in the Israel Discount Bank, took more than $100 million from the company since 2006 to pay himself back for failed personal investments. The plaintiffs, Mich II Holdings and Seeva II Holdings, on behalf of real estate companies SMV and SWC Property Holdings, are suing Schron, CAM-Elm and Schron’s other companies, Cammeby’s and HSA Equipment, seeking a total of $105 million in damages. They are also suing Schron’s eight children, who are majority owners of CAM-Elm, because they failed to remove their father from his position when he abused it.
[Courthouse News]