In 2016, the Labor Department sued Bridgeport Health Care Center and Bridgeport Manor and the nursing home’s chief financial officer, Chaim Stern, alleging they funneled $4 million from the facility’s retirement plan to themselves and a religious organization. The feds alleged Stern diverted at least $4 million in plan assets to Bridgeport Health, himself, and Em Kol Chai, a New York-based Jewish organization that lists Stern as its president and trustee.
Workers accused Stern of failing to pay them on numerous occasions and failing to pay the company that manages their healthcare benefits. The nursing home filed for bankruptcy April 18 leaving many workers high and dry. The 240-bed facility has a two-star rating on Nursing Home Compare and had been dinged for a high number of days without registered nurse staffing.
A spokesperson for the U.S. Attorney’s Office confirmed to News12 that “federal law enforcement activity” was taking place at the nursing home, but would not say which federal agencies were involved. A warrant was served and the FBI, Department of Labor staff and others were on the scene raiding the facility’s administrative offices.