The owner of the Batavia Nursing Home has been accused by federal authorities of committing wire fraud to help fund a "lavish" lifestyle.
Meanwhile, two employees of the nursing home on State Street have contacted The Batavian to say they've either not been paid or were paid late.
Marc L. Korn, 54, of East Amherst faces a possible 20 years in prison or a $250,000 fine or both. He was arraigned a week ago in federal court and is scheduled to appear again on June 2.
Assistant U.S. Attorney Gretchen L. Wylegala, who is handling the case, said that Korn devised a scheme to obtain funds from a charitable organization he headed, the American Friends of Assaf Harofeh Medical Center, an organization which raised funds to support a medical center in Israel.
An IRS investigator told the Buffalo News he's diverted as much as $1 million for his personal use and has also kept employee payroll taxes.
For employees of the nursing home, they're wondering what's going on. Today, they were told there was no money in the payroll account so no checks would be issued.
"We've been told we would be paid, but we don't know when," an employee said.
This has happened before, according to another employee, who said two weeks ago the employees were given checks but told they couldn't cash them until the following week.
Korn could not be reached for comment.
One of the employees said that the Department of Labor has visited the facility, but she's not aware of any action beging taken.
She said all deliveries -- including food for residents -- are now C.O.D. (collect on delivery)
"The residents have their Social Security checks sent to the nursing home," she said. "Where's the money going?"
A relative of hers is a resident at the facility and the family is trying to move her, but she said she doesn't think the community really understands what's going on at the nursing home.
Five people quit today, she said. She figures she will start pulling 80-hour work weeks to keep up with the work load.
She continues her employment there, she said, because she believes it would be unethical to leave the residents without care.
Her husband's income has also been uneven lately, she said, so times are tough.
"I have to go home and tell my kids we may not eat today," she said.
She said all of the employees are facing similar difficulties, including falling behind on mortgages and car payments.
The woman said employees have been told Korn is trying to sell the facility, but they're not aware of any progress on that front.
We tried Korn's pager number, but it's disconnected. We also emailed him and asked for comment.