The U.S. Department of Justice sent a press release on a recent Connecticut embezzlement case. Chaim Stern received 30 months of imprisonment, followed by three years of supervised release, for embezzlement and tax offenses related to his operation of nursing homes.
Stern was the owner and operator of the Bridgeport Health Care Center (“BHCC”), Bridgeport Manor, and the Rosegarden Health and Rehabilitation Center LLC (“Rosegarden”). He privately owned these nursing and rehabilitation facilities. He siphoned funds to profit himself at the expense of his residents and employees.
Between 2011 and 2018, Stern stole $4.1 million from the BHCC Pension Plan. He diverted the money to a purported charity, called Em Kol Chai, but it was really for his personal use. Stern also failed to pay millions of dollars in health insurance claims resulting in debt collection action against employees by the health care providers. What a scumbag.
On January 15, 2020, Stern pleaded guilty to one count of theft or embezzlement from an employee benefit plan, one count of theft or embezzlement in connection with healthcare, and one count of willful failure to pay tax.
Stern will report to prison today. Good riddance. He should not get out early.