New York Attorney General Letitia James has secured a $12 million settlement and sweeping reforms at Van Duyn Center for Rehabilitation and Nursing in Syracuse, following a harrowing investigation into resident neglect and financial misconduct by the facility’s owners.
The state’s probe revealed that owners Efraim Steif and Uri Koenig funneled millions of taxpayer dollars intended for patient care into their own pockets, while residents endured unsafe conditions, trauma, and in some cases, death.
“For years, residents at Van Duyn endured unacceptable neglect that caused traumatic injuries and tragic deaths,” said Attorney General James. “We are holding Van Duyn’s owners accountable for these conditions and ensuring the facility will make all the necessary changes so that its residents get the care they deserve.”
What the investigation uncovered
According to the Attorney General’s Office, Van Duyn was chronically understaffed, and residents suffered as a result:
- A resident died after her nightgown caught on a door handle following a fall. Staff failed to assist her to the bathroom or respond in time.
- Another resident died and was found in rigor mortis after staff failed to administer care or medication properly.
- Multiple residents were hospitalized with infections, untreated conditions, and dehydration.
- Several were discharged inappropriately and dropped off at a social services office without identification.
On the financial side, Steif and Koenig used Medicaid and Medicare reimbursements to pay themselves inflated rent and unearned salaries, drawing over $2 million from 2015 to 2022 and leaving the facility underfunded and understaffed.
Reforms and penalties
Under the terms of the settlement:
- $10 million will go directly to a Resident Care Fund to improve staffing and resident services.
- $2 million will be returned to New York’s Medicaid program.
- An Independent Health Care Monitor (IHM) will oversee operations, staffing levels, and medical leadership at Van Duyn.
- An Independent Financial Monitor (IFM) will supervise the facility’s finances and ensure funds are used appropriately.
- Van Duyn must appoint a Chief Compliance Officer to enforce legal and ethical standards.
The monitors will have the authority to recommend improvements—including staff pay increases—and Van Duyn will face daily penalties if they fail to comply…