Another lawsuit involving nursing home owners and operators Murray Forman, Leonard Grunstein, and Rubin Schron. Forman and Grunstein are accusing Schron of treating their company as "his personal piggy bank" and looted it for more than $100 million. Rubin Schron first fattened his piggy bank in 2006, with $40 million that he claimed was repayment of a capital contribution from CAM-Elm Co., his family-owned business that’s majority owner of plaintiff SMV Property Holdings.
Schron took $66 million more in 2008 and 2009 to recoup money he lost in personal investments, including rate swaps with Citibank, shareholders say in New York County Court. Schron’s eight children were majority owners of CAM-Elm, giving them the right to remove their father from his position, but since they did not, the plaintiffs say, they are suing them too.
"Schron is not content with the substantial economic returns that he, his family, and his companies have "legitimately" earned. Instead, Schron has resorted to theft, improper accounting manipulation, and more, against those who trusted him and relied on him," the complaint states.
Schron has also accused Leonard Grunstein and Murray Forman of "stealing from the company," so they added a defamation charge to the claims of misappropriation. Of course, truth is the ultimate defense to defamation.
The plaintiffs seek an accounting and $105 million in damages and want Schron booted from his position and new managers appointed. See full Complaint here.