Ocean House Owners Nailed! Taub And Son Arrested For Stealing Millions From Facility
Ocean House Owners Nailed!
Taub And Son Arrested For
Stealing Millions From Facility
By Gary G. Toms
Sherman Taub, 57, and his son, Judah, 33, were arrested and charged last week with stealing more than $2 million from Ocean House, an adult care facility for the mentally disabled located at 12-14 Heyson Road in Far Rockaway. The two men are accused of bilking more than $2 million from the 125-bed facility, which operates as a not-for-profit entity.
According to published reports, the period of embezzlement began when Sherman Taub's brother-in-law, Beryl Zyskind, was running the center. Zyskind was later convicted of theft of resident's funds and bank fraud, and was sentenced to 30 months in prison in 1996.
A 34-count indictment was handed down against the Taubs, and Manhattan District Attorney Robert Morgenthau stated that the duo stole a significant portion of the of the $1.4 million per year paid to Ocean House by the Social Security Administration on behalf of many of the disabled residents and used it for their own personal interests.
Prosecutors claim that in the mid-1990's, Sherman Taub secretly purchased two mortgages that Zyskind defaulted on (one totaling $1.2 million, and the other at $450,000) for $400,000, which allowed him to take over the facility. The mortgages were under the facility's former name, Hi-Li Manor Home for the Aged. Taub then doctored paperwork to make the mortgage look as though it was for $4 million. The prosecutors also contend that Taub had Ocean House make mortgage payments to a pseudo-company that he created. The Taubs were pulling in so much money that Ocean House had to take out a $1.4 million loan to renovate the facility. Reports indicate that Taub inflated construction costs to the tune of $135,000, which was used for renovations at Judah Taub's home.
The Taubs have been charged with grand larceny, falsifying business records and a host of other felonies, and face up to 25 years in prison. They pleaded not guilty during an appearance at the State Supreme Court in Manhattan, and were later released on their own recognizance. Bail is scheduled to be set this week.