Ex-owner of Lewis­ton, Batavia nurs­ing homes ad­mits to mis­de­meanors

The Buffalo News - - LOCAL NEWS - By Phil Fair­banks NEWS STAFF RE­PORTER

Nearly eight years ago, Marc Korn faced al­le­ga­tions that he stole from a char­ity and his own nurs­ing homes in or­der to fi­nance an ex­trav­a­gant life­style.

On Fri­day, the 62-year old Amherst man pleaded guilty to two mis­de­meanor charges and agreed to pay $3.4 mil­lion in resti­tu­tion.

Korn, as part of a plea deal with fed­eral pros­e­cu­tors, ad­mit­ted cheat­ing Fifth Third Bank of Cincin­nati and fail­ing to pay fed­eral with­hold­ing taxes for his em­ploy­ees.

When he is sen­tenced by U.S. Dis­trict Judge Wil­liam M. Skretny, he will face up to two years in prison.

Pros­e­cu­tors said Korn, who at the time owned the Fairchild Manor Nurs­ing Home in Lewis­ton, used false doc­u­men­ta­tion in or­der to qual­ify for a $3.9 mil­lion line of credit with Fifth Third Bank.

“Ul­ti­mately, the $3.9 mil­lion loan went into de­fault and the bank took a loss,” As­sis­tant U.S. At­tor­ney El­iz­a­beth R. Moel­ler­ing said Fri­day.

Moel­ler­ing, who pros­e­cuted the case with As­sis­tant U.S. At­tor­ney Rus­sell T. Ip­polito Jr., said Korn also took money from Fairchild and an­other of his for­mer busi­nesses, the Batavia Nurs­ing Home.

She said he si­phoned off money in­tended for em­ployee with­hold­ing taxes and used it in­stead to pay for per­sonal ex­penses such as hockey tick­ets and jewelry.

In his plea deal, Korn agreed to pay $858,614 to the In­ter­nal Rev­enue Ser­vice and $2.4 mil­lion to Fifth Third Bank. He also agreed to drop his ap­peal of a court rul­ing in his per­sonal bank­ruptcy case.

De­fense lawyer Steven M. Co­hen said Korn’s two mis­de­meanor con­vic­tions – bank theft and will­ful fail­ure to pay taxes – are far dif­fer­ent than the felony charges he faced in 2011. “That was, in our opin­ion, a sub­stan­tial over­charge,” Co­hen said of the ini­tial in­dict­ment.

Co­hen said Korn elected to take the plea deal be­cause of poor health and the prospect of go­ing through three sep­a­rate fed­eral court tri­als. The first of those tri­als was sched­uled to be­gin in early Jan­uary.

Korn, who com­plained of chest pains while in court Fri­day, is await­ing a heart trans­plant and is also be­ing treated for cere­bral palsy, his lawyer said.

In­ves­ti­gated by the FBI and IRS, Korn was ini­tially ac­cused of steal­ing money from the Amer­i­can Friends of As­saf Haro­feh Med­i­cal Cen­ter, a char­ity formed to sup­port a hos­pi­tal in Is­rael. In his fi­nal plea agree­ment, there is no men­tion of the Amer­i­can Friends or his role with the or­ga­ni­za­tion.

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