Zvi Feiner

A Chicago-area rabbi, who formerly owned a nursing home chain at the heart of the biggest default in the history of a federal mortgage-guarantee program, has been indicted by federal authorities on charges he bilked millions of dollars from investors. The indictment against Zvi Feiner and a business partner, Erez Baver, is the latest chapter in the yearslong saga involving the Rosewood Care Centers chain of nursing homes, which are mainly in the Chicago suburbs. The Rosewood chain — which has been renamed by the new owners — was part of a network of nursing homes that Mr. Feiner, 50, and Mr. Baver bought after raising money from investors in the Orthodox Jewish communities around Chicago and New York. In addition to the wire fraud charges, federal authorities seek to recoup $13.56 million from Mr. Feiner and $3.76 million from Mr. Baver. Mr. Feiner paid a $1 million penalty to HUD last year for failing to file several years of audited financial reports required by the mortgage insurance program. He has also reached an agreement in principle with the S.E.C. in its lawsuit. Greystone, a nursing home lender and operator, bought the Rosewood facilities for $81 million in January 2020.