Feiner and Baver Accused of $17M Ponzi Scheme

CHICAGO — In a stunning turn of events, ZVI FEINER and EREZ BAVER, top brass from the once-respected FNR Healthcare LLC chain, have been charged with orchestrating a multi-million-dollar Ponzi scheme. Feiner, owner and CEO of the Skokie-based healthcare empire, and Baver, his Executive Vice President and bookkeeper, are alleged to have raised millions by fraudulently selling membership interests in FNR’s various ventures.

The duo is accused of misappropriating funds meant for acquiring nursing homes and assisted living facilities, instead using them for personal gain. From 2012 to 2017, Feiner and Baver’s scheme promised investors substantial returns, but in reality, these payments were funded by money from newer investors. The indictment returned in U.S. District Court in Chicago paints a picture of a systematic fraud, with the pair siphoning investor funds for their own benefit.

The charges against Feiner total $13.56 million, while Baver faces $3.76 million in forfeiture requests. The indictment also levies ten counts of wire fraud against Feiner and one count against Baver. Despite these serious allegations, Feiner has pleaded not guilty to all counts, with Baver’s arraignment scheduled for September 16, 2020.

John R. Lausch, Jr., U.S. Attorney for the Northern District of Illinois, along with Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago FBI office, announced the charges. The U.S. Securities and Exchange Commission in Chicago offered crucial assistance to the investigation. Assistant U.S. Attorney Kathryn Malizia represents the government.

Each count of wire fraud carries a maximum sentence of 20 years in prison. While an indictment is not proof of guilt, Feiner and Baver are presumed innocent until proven guilty beyond a reasonable doubt. The public is reminded that justice must be served, and these allegations will be thoroughly investigated by the courts.