Contact Us

Allure Group's Bid To Buy Two Nursing Homes Blocked As Corruption Investigation Roils On

New York

NY state attorney general Eric Schneiderman has blocked the Allure Group, a nursing home operator, from buying two nursing homes following a controversial transaction in the Lower East Side in which Allure acquired a facility and then sold it to a developer.

Up until now, Allure was in talks to acquire the nonprofit Greater Harlem Nursing Home & Rehabilitation Center and the Sts. Joachim and Anne Nursing and Rehabilitation Center, Politico reports.

Last year, Allure purchased Rivington House (pictured) in the LES, and allegedly told public officials it would continue to operate the site as a nursing home before selling it to condo developer Slate Property Group for $116M.

Allure paid the de Blasio Administration $16M last fall to remove restrictions on the use of Rivington House, a move that’s now under investigation and for which the Mayor’s office has been roundly criticized. Schneiderman's office is one of four entities investigating the deal. 

A four-page letter from the AG’s office provided to Politico says Allure “made misrepresentations to the Department of Health that New Rivington would continue to operate a nursing facility at” the Rivington site.

In a statement, Allure countered by saying: "The letters from the Attorney General's office ignore critical facts in unfairly criticizing Allure Group and its affiliates. At no time has Allure misled any public authority about its intentions or commitments." [Politico]