New York Attorney General Letitia James has announced a $12 million settlement and major reforms at Van Duyn Center for Rehabilitation and Nursing in Syracuse following an investigation into resident neglect and financial fraud. The settlement includes $10 million earmarked to improve resident care and staffing, with additional oversight from independent monitors.
The Office of the Attorney General (OAG) found that owners Efraim Steif and Uri Koenig diverted millions of taxpayer dollars intended for resident care, resulting in chronic understaffing and unsafe conditions at the facility. The investigation documented several incidents where inadequate care led to hospitalizations, deaths, and significant trauma among residents.
“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. I will always fight for the dignity and rights of vulnerable New Yorkers and I will continue to go after nursing homes and their owners when they fail to take care of their residents.”
The OAG’s findings included cases where residents died or were hospitalized due to lack of basic assistance or medical attention. In one case, a resident died after staff failed to assist her to the bathroom; another was found deceased after not receiving proper medication or assessment.
Financially, Steif and Koenig withdrew tens of millions by leveraging a mortgage on the property and charging inflated rent payments using Medicare and Medicaid funds between 2015-2022. The OAG also determined that over $2 million was transferred as fraudulent salaries for work not performed.
Under terms of the settlement, Van Duyn must pay $2 million in restitution to New York’s Medicaid program along with $10 million directed toward a Resident Care Fund overseen by independent monitors. An Independent Health Care Monitor (IHM) will supervise health operations at Van Duyn, making recommendations—such as raising staff pay—that must be implemented promptly or face penalties. An Independent Financial Monitor (IFM) will oversee finances to prevent future misuse of funds.
Van Duyn is also required to appoint a Chief Compliance Officer responsible for implementing monitor recommendations and maintaining compliance with federal and state laws. The facility cannot be sold or closed for five years, must maintain recommended staffing levels beyond the settlement period, and faces further penalties if it fails these obligations.
Attorney General James noted this is part of broader efforts against nursing home abuse statewide. Six other facilities are under similar oversight following investigations by her office. Since taking office, she has secured more than $70 million from nursing home operators through settlements addressing fraud or neglect.
In November 2024, Attorney General James reached a $45 million settlement with Centers for Care involving four nursing homes under independent monitoring. Earlier in March 2024 she secured an $8.6 million agreement at Fulton Commons on Long Island; Cold Spring Hills Center faced legal action in December 2022 over misused funds leading to neglect.
Senator Chris Ryan commented: “What happened at Van Duyn is heartbreaking and infuriating. Families entrusted this facility with the care of their loved ones, only to see that trust betrayed while owners pocketed millions in taxpayer dollars… This action sends a clear message: Central New Yorkers will not tolerate exploitation of our most vulnerable neighbors, and those who try will be held responsible.”
Assemblymember Pamela Hunter added: “The residents of Van Duyn and their families deserved care, compassion, and dignity, not neglect and exploitation… We must remain vigilant in defending the rights of vulnerable New Yorkers.”
Syracuse Deputy Mayor Sharon Owens stated: “The conditions at Van Duyn Center for Nursing and Rehabilitation are horror stories… This is the kind of advocacy and enforcement Syracuse and its residents need.”
Anyone wishing to report concerns about nursing home conditions can file confidential complaints online or call the Medicaid Fraud Control Unit hotline at (833) 249-8499.
The investigation involved multiple teams within MFCU’s Civil Enforcement Division as well as support from state agencies including the Department of Health.
