(PORT WASHINGTON, N.Y.) – Nassau County Legislature Minority Leader Delia DeRiggi-Whitton (D – Glen Cove) today urged New York State Attorney General Letitia James to open an investigation into the financial practices of The Harborside, a continuing care retirement community in Port Washington, amidst recent developments that have raised serious concerns about the potential misuse of significant financial resources.
Elderly residents paid entrance fees ranging from $527,250 to $2.2 million to buy into the facility and are continuing to pay substantial monthly maintenance fees to continue residing in the facility. In many cases, these seniors sold their homes and depleted their life savings to make the move. Yet, despite having raised upwards of $130 million, The Harborside recently declared bankruptcy for the third time in the past decade and has claimed that its cash reserves have dwindled to just $1.5 million. In a pending court case, the food vendor who provides nutrition services for the community is cutting ties with The Harborside, citing $1 million in unpaid bills.
Minority Leader DeRiggi-Whitton said that the fiscal collapse of this facility is creating a heart-wrenching situation in which Harborside residents are now faced with the unconscionable dual threats of losing their life’s savings and losing their homes through no fault of their own. The average age of Harborside’s population is 90.
“Based upon the manner in which this operation appears to be collapsing upon itself, one must consider the alarming possibility that there is more than gross mismanagement at play here and that The Harborside may be operating as a Ponzi scheme, in which they are collecting vast sums of money from current and prospective residents while failing to provide the security or care they were promised,” Minority Leader DeRiggi-Whitton wrote to Attorney General James on Tuesday, Oct. 29.
Minority Leader DeRiggi-Whitton urged the Attorney General to open an investigation to:
- Facilitate a forensic audit of The Harborside’s finances to determine where residents’ entrance fees and monthly payments have gone;
- Ensure that all individuals responsible for the orchestration and execution of any alleged criminal activity are prosecuted to the fullest extent of the law; and
- Protect the substantial investments made by these residents and recover, if necessary, the agreed-upon, significant percentage share of their principal that was promised to them upon divestment from The Harborside.
“Whether a byproduct of alleged criminality or mere incompetence, the crisis triggered by the management of The Harborside, who promised to care for our community’s elders for the remainder of their lives, has created tremendous doubt and worry amongst local families. We cannot allow any of them to be victimized any longer,” Minority Leader DeRiggi-Whitton wrote to Attorney General James.