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Attorney General Tries to Reign In Care Provider at Center of Rivington House Scandal

Schneiderman's office wants to prevent the Allure Group from buying more nursing homes

The nursing home provider at the center of the Rivington House scandal is getting reprimanded by New York State Attorney General Eric Schneiderman's office. Following the controversial actions surrounding the Lower East Side facility, the AG's office is objecting to the Allure Group's attempts to purchase additional nursing homes in Harlem and Coney Island, the New York Times reports.

Allure was in talks to purchase the Greater Harlem Nursing Home and SS. Joachim and Anne Nursing & Rehabilitation Center, in Coney Island, but the AG's office sent letters to the lawyers representing those non-profit groups, preventing them from selling the buildings.

Earlier, the State Health Department had approved the sales, and Allure was in fact operating the Harlem care facility under an agreement with the State Department. The deals were approved on the promise that Allure would maintain these facilities as nursing homes, according to the New York Daily News.

But the AG's office believes Allure misrepresented itself in two previous, similar purchases. In the case of Rivington House, the property was sold to a luxury condo developer for $116 million, one year after it was purchased (and after a murky removal of deed restrictions), and another facility Allure purchased in Bed-Stuy was shutdown a year after its purchase. A representative for Allure told both the Times and the Daily News that AG's office had ignored certain facts while rejecting the purchases.

Non-profits in New York looking to sell their assets have to get approval from a state court. The AG's office looks over these approvals and can object in certain cases, though the decision will ultimately be in the hands of the state court.