A former Connecticut nursing home owner will spend the next 2 1/2 years in prison for stealing more than $4 million from staff members’ pension and health plans.
Chaim Stern, 72, of Flushing, NY, was sentenced to 30 months in prison for embezzlement and tax offenses, the U.S. Attorney’s Office for the District of Connecticut announced this week. His prison time will be followed by three years of supervised release.
Between 2011 and 2018, Stern stole about $4.1 million from an employee pension plan, and diverted the money to a charity, himself and “other entities,” according to the state. He also embezzled about $305,600 that was supposed to pay for an employee health claim for other and personal uses.
Because of Stern, the facilities failed to pay employment taxes and pay its shares of employment taxes between January 2017 and March 2018. Stern’s crimes resulted in a total tax loss of about $4.3 million.
He previously agreed to pay $4.1 million in restitution to the pension plan and a total of $2.4 million to the IRS and participants in the health plan with unpaid claims as part of his plea agreement.
Stern is currently freed on a $500,000 bond and is required to report to prison on May 26.