A group of residents is suing a nursing home management company Marcus & Millichap, alleging it omitted key details from licensing applications that resulted in racketeering-level behavior.
The lawsuit was originally filed in 2018 against Marcus & Millichap by Betty Smith, a former short-stay resident. The suit claims she and two other plaintiffs suffered financial harm because the three nursing homes they stayed at were licensed under false pretenses. Their attorney Mary Perry said Oct. 5 the plaintiffs were financially injured because they paid for services at a facility that should not be licensed.
They accuse Marcus & Millichap owner Michael Bokor of supplying incorrect information on the licensing application for the three facilities, as well as 19 others in Florida. They allege the defendants planned to sell the properties before the state's licensing agency realized there were issues. Ms. Perry also alleged Mr. Bokor and his businesses had a history of whistleblower claims and lawsuits and that the nursing homes often changed their names to avoid detection.
The allegations could result in $900 million in damages if the suit is granted class standing.