Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that Chaim Stern of Flushing, New York, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 30 months of imprisonment, followed by three years of supervised release, for embezzlement and tax offenses related to his operation of nursing homes in Bridgeport and Waterbury.
According to court documents and statements made in court, Stern was the principal operator of the Bridgeport Health Care Center ("BHCC"), Bridgeport Manor, and the Rosegarden Health and Rehabilitation Center LLC ("Rosegarden") in Waterbury, which were privately owned nursing and rehabilitation facilities. Between approximately 2011 and 2018, Stern stole approximately $4.1 million from the BHCC Pension Plan, over which he was the trustee, principally by diverting the money to a purported charity, called Em Kol Chai, which Stern controlled, as well as to himself and other entities. Also, in approximately February 2015, Stern misapplied $305,608.06 from BHCC Health Plan by diverting the money from a stop-loss insurance plan that was intended to pay for an employee health claim, and instead used it for other purposes, including Em Kol Chai, the operation of the BHCC, and for Stern's personal use.