The New York Post reported that New York’s Attorney General Eric Schneiderman announced a settlement with a shady real-estate group that bought city nursing homes and flipped them to developers who sought to convert them into luxury condos.  The settlement between the attorney general and The Allure Group includes measures to reform the process that led to the closure of Rivington House on the Lower East Side and CABS Nursing Home in Brooklyn — in addition to levying $2 million in penalties to the developers, Schneiderman said.

“We’re requiring Allure to open new health-care facilities in Brooklyn and the Lower East Side, and make major improvements to its Harlem facility, while also providing $1.25 million to nonprofits serving vulnerable New Yorkers.”

As part of the settlement, Allure must create a new health facility on the Lower East Side to “fill health-care gaps caused by the closure of Rivington House,” Schneiderman said.

After purchasing the CABS nursing home in Bed-Stuy in 2015, Allure allegedly forced out frail patients — leading to the untimely deaths of some residents, according to a lawsuit filed in Brooklyn Supreme Court. The court papers charge that Allure repeatedly lied during the bidding process.

The settlement with the attorney general also requires Allure to open a “new Central Brooklyn health-care facility to offset lost health care services resulting from the closing of the CABS Nursing Home.”

 

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