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Extensions of Remarks Hon. Edward I. Koch

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Extensions of Remarks Hon. Edward I. Koch June 2, 1976 EXTENSIONS OF REMARKS 16279 Foreign Commerce. Calls for measures by appreciation to Carnegie Hall for its 85 y~s.rs H. Res. 1180. May 6, 1976. Sets forth the Federal agencies to insure that the quality . of artistic achievement and cultw·al em·ich­ rule for the consideration of H.R. 1285!. and quantity of free broadcasting service is ment. H. Res. 1181. May 6, 1976. Sets forth the not impaired by the development of pay tele­ H. Res. 1176. May 6, 1976. House Adminis­ rule for the consideration of H.R. 12934. tration. Provides that Members of the House H. Res. 1182. May 6, 1976. Sets forth the vision. rule for the consideration of H.R. 13350. of Representatives and employees of th~ H. Res. 1173. May 5, 1976. Armed Services. H. Res. 1183. May 10, 1976. Sets forth the Disapproves of the proposal of the executive House, except in specified cases, may noli be rule for the consideration of H.R. 10210. branch to use the authority of Public Law reimbursed for the difference between the H. Res. 1184. May 10, 1976. Agriculture. 85-804 to obligate funds in excess of $25 mil­ cost of first-class air travel accommodations Calls for an assessment of the whey supply lion for the purpose of adjusting naval ship­ and the costs of other air travel accommoda­ and for a research program to utilize whey bUilding contracts. tions. more efficiently. H. Res. 1174. May 6, 1976. Al·med Services. H. Res. 1177. May 6, 1976. Sets forth the H. Res. 1185. May 10, 1976. Interstate and Disapproves the proposed obligation of the ru1e for the consideration of H.R. 10451. Foreign Commerce. Calls for measures by United States with respect to specified ship­ H. Res. 1178. May 6, 1976. Sets forth iihe Federal agencies to insure that the qual­ building contracts. rule for the consideration of H.R. 12387. ity and quantity of free broadcasting service H. Res. 1175. May 6, 1976. Post Office and H. Res. 1179. May 6, 1976. Sets forth the is not impaired by the development of pay CiVil Service. Expresses congratulations and rule for the consideration of H.R. 12835. television. EXTENSIONS OF REMARKS MORE ON THE CASE OF I believe that if we permit white collar greed was to build for himself a life of luxury EUGENE HOLLANDER criminals to escape prison and simply engage and prestige on the backs of those com­ in restitution, it places in question our right mitted to his care. For example, he remodeled to punish with prison the poor who engage his Fifth Avenue apartment at a cost of in physical crimes of violence. I am one of nearly $30,000; he purchased more than HON. EDWARD I. KOCH those who believes that our judicial system is $120,000 worth of paintings including two OF NEW YORK verging on bankruptcy. We do not apprehend Renoirs-and in both instances, these costs IN THE HOUSE OF REPRESENTATIVES our criminals in sufficient numbers and when were disguised as expenses related to the care we do apprehend them in limited numbers, of patients in his nursing homes. Wednesday, June 2, 1976 we do not adequately punish them. When Your honor, I do not intend to stand here Mr. KOCH. Mr. Speaker, I should like the revelations are such as they were in this and tell you that Eugene Hollander ran case, that someone has enriched himself on houses of horror, although the Health De­ to bring to the attention of our col­ the bodies of those elderly entrusted to his partment has cited enough deficiencies, in­ leagues additional information bearing care by the Federal Government, and at the cluding inadequate food and inadequate upon what I consider to be the inade­ expense of the U.S. taxpayer, it is shocking staffing, to conclude that Hollander is not quate sentencing of Eugene Hollander, a to find that such an individual does not go the public's idea of one who should care for nursing home operator who was one of to jail. Such kid glove handling of Mr. Hol­ the elderly, but one thing should be crystal the chief perpetrators of medicaid fraud lander must reinforce, whether true or not, clear: That if Mr. Hollander as a leader of the feelings that pervade so many in our the industry had less greed and more com­ in the State of New York, and who was society today, that the rich get richer, the given a suspended prison sentence. The passion, his homes could have served as poor get poorer and it is not what you know, much needed models of care for others in sentencing judge, Justice Milton Mallen, but whom you know that counts. said at the time of sentencing- this State. I want to take this opportunity to Sixteen years ago, this same defendant A prison sentence in this instance is the again applaud the enormously effective and scores of other nursing home operators equivalent of a death sentence. were caught, and forced to admlt their fraud, efforts of Special Prosecutor Charles J. and repay to the city of New York hundreds I have since received the statement of Hynes in bringing Dr. Bergman and Eu­ of thousands of dollars. But despite the pub­ special State prosecutor, Charles J. gene Hollander to trial and at the same licity, the public outcry and the forced resti­ Hynes, deputy attorney general, which he time I want to again deplore the action tution, no lesson was learned by this de­ delivered at the time of sentencing and taken by the sentencing court. fendant or by the other operators of the which I believe should be read by every­ The full statement made by Charles J. industry: and for all its hooplah, history one interested in justice and distressed Hynes, special prosecutor, at the sen­ records the Kaplan investigation to be a dis­ by the court's failure to impose a prison tencing of Eugene Hollander follows: mal failure. I suggest to your honor that the reason sentence on Eugene Hollander. STATEMENT OF SPECIAL STATE PROSECUTOR, for the failure was that those who stole went What is important to note is that the CHARLES J. HYNES, MADE AT THE SENTENC­ unpunished. same defendant committed comparable ING OF EUGENE HOLLANDER While no nursing home operator was prose­ crimes in the nw·sing home field 16 years May it please the court, when this investi­ cuted as a result of the Kaplan investiga­ ago and was not jailed but was merely gation began 17 months ago, in addition to tion, one thing is certain: All, including the required to repay moneys to the city of our primary aim that conditions in the nurs­ defendant, were put on notice. And in that New York. Special Prosecutor Hynes ing homes of this State be improved to an sense Mr. Hollander stands before your stated in his statement to the court- acceptable level of care, we vowed that the honor today as a second offender. Given the failures of the Kaplan investigation not be seriousness of the crimes for which he Mr. Hollander stands before Your Honor repeated. today as a second offender. pleaded guilty, added to his total lack of re­ In a very real sense, Eugene Hollander is a morse for past thefts, fundamental principles Furthermore, the special prosecutor symbol of those failures. Beginning in 1960, of justice require that he be incarcerated as addressed himself to the impaired phys­ Mr. Hollander served for many years as the any other citizen who stands convicted of ical and mental condition o{ the defend­ president of the Metropolitan Nursing Home crimes of such magnitude. Association. He has, for two decades, operated It is equally significant that Hollander, ant and said in support of his request of nursing homes in this city. who had admitted to the court a net worth a jail sentence-- Drawing upon his years of experience as an of almost $9 million has not taken, until the Dr. Thomas Rigney is the medical director owner and from his position of leadership in eve of sentence, a single meaningful step to­ at Fishkill. He has personally assured me the industry, Mr. Hollander could have acted ward returning the money he stole. Indeed, that if Mr. Hollander is sent to that institu­ as a force for a change in an industry that the Renoirs and the other expensive trap­ tion, every precaution will be taken to sta­ LoUis Kaplan found pervasively corrupt 16 pings which so highlight his greed remain bilize his medical and emotional condition. I years ago. Instead, he holds the dubious dis­ in his possession or under his control. How would also like to point out that Fishklll is tinction of having stolen money-more fla­ did it happen. in no sense the usual prison environment. It grantly than any other nursing home opera­ Your honor, I recognize another factor is rather, as Dr. Rigney describes it, a nursing tor thus far prosecuted in the State of New which exists in this case. I sympathize with home. York. Eugene Hollander because of his impaired But your honor, it is not merely how much physical and mental condition-more than I should like to repeat what I said to money he stole--more than $1 mlliion from he knows or believes. But jall, very much this House on May 19, in commenting on 1969 until his indictment this year-it is the like any institution, including a nursing my distress at the failure of the court to why of that theft that is so significant and home, is never pleasant, albeit Hollander had sentence Eugene Hollander appropri­ so outrageous.
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