Former operator at Saratoga Center nursing home must pay back $656,000 for fraud, neglect

The former unlicensed operator of a Saratoga County nursing home must pay the state $656,000 for years of fraud and neglect, Attorney General Letitia James announced on Thursday.

Chaim Scheinbaum, of Lakewood, New Jersey, operated Saratoga Center for Rehabilitation and Skilled Nursing Care from 2017 to 2021 in Ballston Spa without a license from the state.

During his tenure, conditions worsened at the center. There was a lack of hot water and clean linens. Also, residents had falls, pressure sores and other lapses in care, James said.  

This follows four previous settlements totaling over $7.1 million with the owners of the center, a second unlicensed operator and the facility’s landlord, she said.

Scheinbaum must return $656,000 to Medicaid and $393,600 of that will go to New York.

“Every resident of New York’s nursing homes deserves high-quality care and proper staffing to meet their needs,” James said in a statement. “Rather than ensure vulnerable residents got the care they deserved, this individual mismanaged Saratoga Center’s finances and failed to adequately staff the facility, causing residents to suffer the consequences of neglect and unsanitary conditions.”

The U.S. Attorney’s Office prosecuted the case. U.S. Attorney Carla Freedman said that Scheinbaum controlled the finances and failed to pay vendors. He billed Medicaid for services that were not delivered.