Allure Group is at the center of the Rivington House scandal on the Lower East Side
As the investigation into the sale of Lower East Side nursing home Rivington House continues from all angles by authority on high, other real estate transactions of The Allure Group continue to be probed. Case in point, a deal to sell a Harlem nursing home to the scandalized care provider is getting lots of attention from New York’s Attorney General these days.
Earlier this week, Attorney General Eric Schneiderman moved to block the sale of the Greater Harlem Nursing and Rehabilitation Facility on 138th Street to Allure Group, backtracking on its initial approval in June. Now the nursing home is pushing back against the attorney general’s office by asking a Manhattan court to dismiss a subpoena for three years worth of records from the care provider, NYDN reports, claiming that the timeframe is too broad and would require too much to be produced.
The Post reports that the Harlem facility has taken it one step further, suing Schneiderman for trying to block the sale. A lawyer for the facility says that the attorney general’s office hasn’t given them "any indication whatsoever that any violation or any statute actionable or prosecutable has occurred." The facility is using that argument to prop up their legal objection to the AG’s attempt to bar the sale.
A spokesman for Schneiderman has refuted that claim, saying, "As our office has documented in great and troubling detail, Allure made clear and repeated promises to continue the operation of nursing homes for the benefit of a vulnerable population — promises that proved to be false."
The Allure Group purchased Lower East Side nursing home Rivington House for $28 million in 2014, before paying the city $16 million to lift a restriction on the lot’s use and selling the building for $116 million to a consortium of developers eyeing the site for luxury condos. The series of transactions has put the care provider in hot water with the Attorney General and Department of Investigations, who are probing the series of events that made the sale possible as well as the intentions of Allure.
- Nursing home sues Schneiderman for blocking sale [NYP]
- Harlem nursing home wants attorney general subpoena tossed out as it tries to sell facility to Brooklyn developer [NYDN]
- Attorney General Moves to Stop Nursing Home Sale to Scandal-Tinged Care Provider [Curbed]