New York Attorney General Announces $871,000 Settlement with Former Director of Brooklyn Nursing Homes
April 19th, 2012 tmccoy
The New York Attorney General announced an $871,000 settlement with Ruby Weston, a former director of two Brooklyn nursing homes, including one that bears her name, the Ruby Weston Manor. It was alleged that Ruby Weston breached her fiduciary duties to both institutions, and received excessive and unauthorized compensation.
Under the terms of the agreement, Weston will pay $821,000 to Marcus Garvey Nursing Home, break any remaining connections to both nursing homes, be prohibited from serving as an officer or director of any New York not-for-profit corporation and pay $50,000 to Schneiderman’s office to defray costs taxpayers endured for the five year litigation.
The Attorney General’s office reportedly that Weston circumvented board oversight at the nursing homes to enrich her family and herself. She allegedly self-approved her salary and benefits, which increased to more than $500,000 per year. She also allegedly steered computer consulting business to her son without getting competitive bids. Weston allegedly appointed a close personal friend to serve as the board chair for both facilities in order to avoid scrutiny.
One of the nursing facilities involved, Marcus Garvey, will implement multiple governance reforms and other measures intended to improve the oversight function of its board and the operation of the nursing home itself.
