A “dean of the New York real estate bar” is accused by federal prosecutors in Boston of participating in a $50 million kickback scheme.
The Am Law Daily: The complaint alleges that [Leonard] Grunstein, wealthy real estate investor Rubin Schron, and investment banker Murray Forman participated in a scheme to accept $50 million in kickbacks from Covington, Ky.-based pharmaceutical vendor Omnicare in order to provide services to a nursing-home company called Mariner Health Care in which the three men are principals.
The allegations against the 57-year-old Grunstein (right), Schron, and Forman were revealed when Omnicare, the nation’s largest provider of pharmacy services to nursing homes, agreed to pay $98 million to settle Justice Department allegations that it engaged in kickback schemes with nursing homes and drugmakers.
Read Am Law’s full story, with extensive details on the complaint and Gruenstein’s background here.
Gruenstein has been a frequent name in the news as of late. He was profiled by the New York Observer in October because the Stuyvesant Town lawsuit alleging illegal deregulation of rent-stablized apartments which resulted in a huge loss for Tishman Speyer — and has the entire New York real estate industry wringing its hands — was his brainchild.
Grunstein’s name also appeared as a “c/o” an account called CCC Trust on the Madoff Investment Securities customer list that was filed with the bankruptcy court in February.
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