Flophouse Operators Admit They Took Kickbacks For Drug Treatment Scam by the Forward

Flophouse Operators Admit They Took Kickbacks For Drug Treatment Scam

Image by Getty

Two Brooklyn “three-quarters” house operators pled guilty in New York on Wednesday to defrauding Medicaid by sending residents to rehab treatments, regardless of whether they were actually addicted to drugs.

“Yury Baumblit and Rimma Baumblit lined their pockets by preying on our most vulnerable New Yorkers,” New York State Attorney General Eric Schneiderman, whose office brought the charges, said in a statement.

Yury Baumblit’s scheme was the subject of a 2015 New York Times exposé. The Times reported that Baumblit had forced drug addicts to relapse and then enroll in a treatment program, or else be thrown out onto the streets.

In their guilty pleas, the Baumblits admitted that they had received $1.5 million in kickbacks for sending residents to Medicaid-sponsored rehab programs.

Contact Josh Nathan-Kazis at nathankazis@forward.com or on Twitter, @joshnathankazis.


Josh Nathan-Kazis

Josh Nathan-Kazis

Josh Nathan-Kazis is a staff writer for the Forward. He covers charities and politics, and writes investigations and longform.

Brooklyn Flophouse Operators Admit They Took Kickbacks

Your Comments

The Forward welcomes reader comments in order to promote thoughtful discussion on issues of importance to the Jewish community. All readers can browse the comments, and all Forward subscribers can add to the conversation. In the interest of maintaining a civil forum, The Forward requires that all commenters be appropriately respectful toward our writers, other commenters and the subjects of the articles. Vigorous debate and reasoned critique are welcome; name-calling and personal invective are not and will be deleted. Egregious commenters or repeat offenders will be banned from commenting. While we generally do not seek to edit or actively moderate comments, our spam filter prevents most links and certain key words from being posted and the Forward reserves the right to remove comments for any reason.

Recommend this article

Flophouse Operators Admit They Took Kickbacks For Drug Treatment Scam

Thank you!

This article has been sent!