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Post date: April 4 2012

A.G. Schneiderman Recovers $871,000 From Self-Dealing Former C.E.O. At Marcus Garvey Nursing Home

Brooklyn Nursing Home Administrator Enriched Herself At The Expense Of Elderly Residents, Will Be Banned From Non-Profits In NYS

Schneiderman: Putting Greed Ahead Of The People You Serve Is Inexcusable

NEW YORK – Attorney General Eric T. Schneiderman today announced that Ruby Weston, a former director and long-time administrator of two Brooklyn nursing homes, Marcus Garvey Nursing Home (now known as Marcus Garvey Residential Rehab, Inc.) and Ruby Weston Manor, will pay $871,000 to settle his Office's claims that she received excessive and unauthorized compensation and breached her fiduciary duties to both institutions. Under the terms of the settlement, Weston will repay $821,000 to Marcus Garvey, sever any remaining connections to both nursing homes, be prohibited from serving as a director or officer of any New York not-for-profit corporation, and pay an additional $50,000 to the Attorney General's Office to defray taxpayer costs for the five-year old litigation.   

"It is inexcusable for someone to profit at the expense of elderly, frail and vulnerable New Yorkers in nursing homes," said Attorney General Schneiderman. "My office will continue to hold accountable those who abuse the system and place their own greed ahead of the interests of the people they serve." 

According to the Office of the Attorney General, Weston circumvented board oversight at the nursing homes in order to enrich herself and her family. Weston self-approved her salary and benefits, which grew to more than $500,000 per year, and steered computer consulting work to her son without obtaining competitive bids. To avoid scrutiny, Weston designated a close personal friend to serve as the board chair for both nursing homes.

In addition to recovering $871,000 from Weston, Attorney General Schneiderman's settlement requires Marcus Garvey Residential Rehab, also a defendant in the five-year old litigation, to implement a series of reforms to address operational deficiencies identified by the New York State Department of Health. Marcus Garvey has been designated a "Special Focus Facility" by the Centers for Medicare and Medicaid Services due to its history of serious quality of care issues. As part of the settlement, Marcus Garvey agreed to hire a consultant, acceptable to the New York State Department of Health, to develop measures to improve health outcomes and the quality of life for Marcus Garvey residents.

Also as a part of the settlement agreement, Marcus Garvey Residential Rehab agreed to adopt a series of governance reforms and other measures designed to improve its board's oversight function and the operation of the nursing home itself. Among other steps, the facility will be required to adopt stricter financial controls, conduct independent and objective surveys in connection with compensation decisions for its senior officers, have its directors receive periodic training on the governance and management of not-for-profit corporations, and have its director of nursing and key nursing supervisors successfully complete intensive courses.

The third defendant in the litigation, Ruby Weston Manor, is now in the hands of a Department of Health-approved receiver and is expected to be sold to another nursing home operator, subject to Department of Health and court approval.

This matter was handled by David E. Nachman, Chief of the Charities Bureau's Enforcement Section, and Assistant Attorney General Barbara L. Quint, under the supervision of Bureau Chief Jason R. Lilien of the Charities Bureau and Janet Sabel, Executive Deputy Attorney General for the Division of Social Justice.