New York AG secured $12 million settlement and mandatory independent monitors after owners diverted millions in taxpayer care funds, causing chronic understaffing, hospitalizations, deaths, and significant resident trauma.

Van Duyn Center for Rehabilitation and Nursing (Syracuse, NY) — Diversion of Care Funds / Resident Neglect and Deaths

Outcome: $12 million settlement secured by NY AG, with $10 million designated for resident care and staffing improvements; Independent Health Care Monitor and Independent Financial Monitor installed; owners Efraim Steif and Uri Koenig penalized.

Van Duyn Center for Rehabilitation and Nursing in Syracuse, New York, became the subject of major enforcement action after investigation by New York Attorney General Letitia James revealed that owners Efraim Steif and Uri Koenig diverted "millions of dollars of taxpayer funds meant for resident care." The diverted funds caused severe and chronic understaffing that directly resulted in "hospitalizations, deaths, and significant trauma" among the nursing home's residents.

The enforcement action — the state's fourth major nursing home neglect and abuse case — resulted in a $12 million total penalty, with $10 million specifically designated for resident care and staffing improvements to restore adequate service delivery. Two types of independent oversight were imposed: an Independent Health Care Monitor (IHM) to oversee clinical operations and an Independent Financial Monitor (IFM) to track facility finances and prevent further diversion.

The August 25, 2025 enforcement action reflects New York's sustained campaign against nursing home operators who exploit government reimbursement while degrading care quality through financial diversion.

Primary Source: Attorney General James Secures $12 Million and Major Reforms at Syracuse Nursing Home to Stop Resident Neglect and Financial Fraud