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A rabbi at the center of a $146 million nursing home mortgage default agreed in principle to settle a lawsuit accusing him of operating a scheme that targeted Chicago’s Orthodox Jewish community.

The Securities and Exchange Commission filed a complaint Sept. 19, alleging Rabbi Zvi Feiner, his company, FNR Healthcare, and former executive Erez Baver illegally solicited money from investors. 

The alleged scheme included more than $10 million from at least 62 investors since 2014.The complaint also named Baver’s company, Cedarbrook Management. 

Investors — including an 86-year-old Holocaust survivor who committed $1 million — were told their money would be used to purchase nursing homes and assisted living facilities in the Midwest. Instead, the government said, it went to pay distributions to earlier investors, support struggling properties, repay loans and for personal use. 

The SEC filing acknowledged FNR Healthcare and approximately 20 LLCs used in the routine have few remaining assets, except, in some cases, “debt-encumbered properties.” 

The SEC also said none of the investors in Mountain Crest, NVP, Rosewood Care Centers, or North Capital has recovered their principal.

Baver and Cedarbrook agreed to pay about $2.25 million and an undetermined civil penalty to settle the charges.

Feiner also agreed to settle but continues to negotiate a figure, according to Crain’s Chicago Business.

Feiner, the former owner of Rosewood, agreed to pay $965,000 in civil penalties in August for failing to submit that company’s annual audited financial reports for fiscal years 2015, 2016 and 2017, as required by the U.S. Department of Housing and Urban Development. 

Rosewood defaulted last year on a record $146 million in mortgages for its nursing home and assisted living facilities located in Illinois and Missouri.