The Next Scandal

Jeff says: "Luke, here is the next scandal to hit the Orthodox world. Even though this is a New York-based deal, Leonard Grunstein’s daughter, Ruchie Fried, lives in Los Angeles and is on the board of Beth Jacob. She was one of Steven Weil’s people. Her in-laws are part of the Orthodox Shaarey Zedek community in the Valley. They are Naomi and Ben Fried. Too many things are hitting home! And now we know why Rubin (Ruby) Schron hsa a mansion in Israel. Guess he was spending his share of the money."

Lou emails:

Weiling Your Life Away

Luke my man, no offense intended, but why does every scandal wind its way back to Rabbi Weil? Grunstein’s daughter was fond of Rabbi Weil when he was at Beth Jacob, so Weil’s name gets inserted into a story about shady business dealings in New York. David Rubin and Rabbi Weil support common causes, so Weil is injected into a nationwide municipal bond kickback scheme. If Ford recalls several million vehicles, I suppose you or one you of your sycophants will manage to work in the fact that Weil drives an Explorer (with a pick-up rear, no less). Perhaps President Obama will rescind the ban on Cuban cigars, and you’ll mention that cigar afficionado Weil finally approves of a decision made by this administration. He’s just a man, my man, and puts his trousers on one leg at a time like you and I.

CrainsNewYork says:

The U.S. Department of Justice filed a complaint against a New York real estate investor and real estate attorney Wednesday, accusing them of accepting $50 million in kickbacks from a pharmaceutical vendor that served nursing home companies in which they are principals.

Rubin Schron, an owner of the Woolworth Building, and real estate attorney Leonard Grunstein, a partner at Troutman Sanders, participated in the scheme, the government alleges. The complaint says the two men were part of a trio who received a $50 million payment from Omnicare Inc., the nation’s largest nursing home pharmacy, so it could continue to provide services to their nursing home companies, Mariner Health Care and Sava Senior Care.

The government alleges the trio attempted to disguise the $50 million from Omnicare as a payment to acquire a business unit from Mariner that in fact only had two employees and was worth far less than $50 million.

The lawsuit was revealed as the Justice Department announced Wednesday that Omnicare will pay the federal government and several states a total of $98 million to settle Medicare and Medicaid fraud charges.

The suit also dovetails with the news that Mr. Schron and other owners of the Woolworth Building, including prominent real estate investor Steve Witkoff, are considering selling a 51% stake in the building to the Sorgente Group, an Italian firm that also owns a stake in New York’s Flat Iron Building.

About Luke Ford

I've written five books (see Amazon.com). My work has been noted in the New York Times, the Los Angeles Times, and 60 Minutes. I teach Alexander Technique in Beverly Hills (Alexander90210.com).
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