Buffalo Business First reported the arrest of a nursing home owner/operators in Buffalo for federal charges of wire fraud and making false statements to law enforcement officials. Marc Irwin Korn was charged in a five-count indictment by a federal grant jury in Buffalo, according to U.S. Attorney William Hochul Jr. Korn is owner of Senior Associates LLC of Amherst, which operated the Fairchild Manor Nursing Home and Rehabilitation Center in Lewiston and the Batavia Nursing Home and Rehabilitation Center.
Officials accuse Korn of taking more than $300,000 for his own personal use using two different schemes. The indictment alleges Korn took over $150,000 from funds donated to the American Friends of Assaf Harofeh Medical Center while serving as an officer of the charity. The charity was founded in 1975 and is designed to raise funds for properties in the Middle East. He also diverted more than $167,000 from nursing home equipment leasing agreements, with the funds deposited into Health Care Alliance Inc., the bank account of one of his business entities. The funds were used for personal expenses, including salon visits, college tuition, clothing and antiques.
The siphoning of tax payer money is a common problem in nursing homes. Money that is supposed to be used for patient care ends up in the owner’s pockets through shell companies and kickbacks.