Woodbury Nursing Home Owners Hit for "Neglect, Massive Fraud"

By Rupert Deedes

New York Attorney General Letitia James has asked a Nassau County judge to appoint a Receiver to oversee the Cold Spring Hills nursing home in Woodbury. The facility was rated "well below average" by federal authorities and was notorious for dozens of horrible deaths during the Covid pandemic.

James filed a suit against the nursing home owners, Brooklyn real estate investor Avi Philipson and his father, Bent Philipson, alleging that they defrauded the government while neglecting the elderly residents of the nursing facility.

According to the AG's charges, the owners diverted $22.6 million in Medicaid and Medicare funds away from patient care and into fraudulent companies they set-up.

The charges allege that they diverted the money to 13 companies they owned, creating the appearance that the payments were for services these companies provided the nursing home. But no such services were provided.

As a result, the Cold Spring Hills Nursing Home - a 588-bed nursing facility - not only was defrauded by the diversion of government funds, but resulted in a severe understaffing at the nursing home and general neglect of the residents’ welfare.

The diverted funds were used to finance the owners’ lavish life-style.

The suit says that the facility was “dangerously understaffed” before and during the pandemic.

Families of residents at the home reported that the facility was filthy and that critical care equipment - such as wheelchairs, beds, shower chairs, and air conditioners - were broken.

Residents were often left sitting in their own urine and feces for hours, and went un-bathed for long periods.

Separately, the nursing home is also in battle with employees over health benefits, which the company plans to terminate on October 15th.