The former owner of two Buffalo-area nursing homes has pled guilty to bank theft and failing to pay taxes.
Along with a possible $200,000 fine, Marc Irwin Korn must also pay back $2.5 million to several entities, and another $850,000 to the Internal Revenue Service, the Department of Justice announced Friday. He could face up to four years in prison.
Korn, 62, previously owned both the Batavia Nursing Home in Batavia, NY, and Fairchild Manor Nursing Home in Lewiston, NY. In 2008, Korn sought a loan to refinance the Batavia location, gaining a $3.9 million loan from Fifth Third Bank, along with a credit card.
But the United State’s Attorney’s Office of the Western District of New York said that Korn’s application contained “numerous falsehoods,” including a vast overvaluation of his home. He also furnished bank statements, claiming to have ownership of an account containing $50,000 when it only had $1 and belonged to someone else. Both the loan and credit card eventually went into default, with Fifth Third losing more than $2.4 million.
Korn also failed to pay employment taxes owed for most of that year, officials said.
He will be sentenced on March 13. He was originally charged in December 2011 in a five-count indictment, alleging that he stole funds intended for charity, diverted nursing home dollars, and made false statements to federal investigators, according to the Buffalo Law Journal.
Fairchild Manor closed in 2011, while the Batavia facility was sold.
