Company that ran Joliet nursing home hit with $525,070 judgment in unpaid wage case

A Will County judge issued a $525,070 default judgment against a company that operated a now-shuttered Joliet nursing home in a unpaid wage lawsuit case but it’s unclear whether former employees will ever see a dime.

The default judgment against Salem Village Nursing and Rehabilitation Center was issued Jan. 10 by Judge Bennett Braun because no attorneys for the company responded to the lawsuit.

The lawsuit was filed on Aug. 2, 2024, by Illinois Attorney General Kwame Raoul’s Office. The lawsuit claimed 117 employees were owed unpaid wages by the owners of Salem Village.

Although no attorney appeared for Salem Village, attorneys did appear for Makhlouf “Mark” Suissa and Shoshana Aryeh, whom Roaul’s office identified as the owners of the nursing home.

Their attorneys denied the allegations they underpaid employees.

A spokesperson with Raoul’s office said they do not comment on pending litigation when asked whether they expected the money from the default judgment would be received.

About $508,151 of the $525,070 judgment is what is owed to claimants in the case for violation of the Illinois Wage Payment and Collection Act, according to Braun’s court order. The rest of the money is for a violation of the state’s minimum wage law, Braun’s court order said.

The case is set for a status hearing on April 17.

Shanta Lewis, a former certified nursing assistant for Salem Village, is one of the employees who filed a claim over unpaid wages.

“I hope we do be able to get what’s owed to us. We all have families and kids and stuff,” Lewis said Wednesday.

It’s not clear whether Lewis and the other 117 claimants will ever see the money from the default judgment.

Edward Manzke, an attorney with Collins Law Firm in Naperville, said his client in a wrongful death lawsuit case against Salem Village has not received money from the $2 million default judgment issued on May 15, 2024.

Manzke said as far as he knows, nursing homes are not required to carry liability insurance and Salem Village apparently did not have any.

“They didn’t have a lawyer respond to our lawsuit, so we are in the process right now of tracking down what if any assets are out there,” he said.

Manzke said he knows his client’s case is not the only one in the same situation.

“The bottom line, it’s a problem and it definitely needs to be addressed by our legislature,” he said.

Manzke represents Karen Turcic, the brother of Michael Pappas, 61, a resident who was fatally wounded in a 2023 attack by a fellow resident, according to the lawsuit.

William Paschall, 72, has been charged with aggravated battery of Pappas.

The bottom line, it’s a problem and it definitely needs to be addressed by our legislature

—  Edward Manzke, attorney in wrongful death lawsuit case against Salem Village.

The Illinois Department of Public Health issued a $50,000 fine against Salem Village after an investigation of the incident that led to Pappas' death.

On Sept. 9, 2024, a $53,146 default judgment was issued against Salem Village when they failed to respond to a lawsuit from UnitedRx that alleged they received no payment for their pharmaceutical services.

Past financial issues

Salem Village began operations in 1998 providing rehabilitation and respite care to residents and patients, according to a June 26, 2024, letter to the Illinois Department of Labor by Jason Kim, an attorney for Eric Rothner, one of the defendants in Raoul’s lawsuit case.

The letter was filed as an exhibit in the lawsuit case.

Kim’s letter contended Rothner should not be sued because he was a “minority shareholder” of Salem Village and he had no control over its operation.

Salem Village “like many other nursing homes” began to experience “staffing and resident census challenges” following the COVID-19 pandemic in 2020, which “resulted in a decline in the company’s financial stability,” Kim’s letter said.

“Despite efforts to remain open, the company no longer had the revenue stream, capital or assets to continue its operations and ultimately decided to voluntarily surrender its operating license and property and close its doors,” Kim’s letter said.

The corporate entity for Salem Village continues to exist but its operations ceased as of Feb. 1, 2024, Kim’s letter said.

In the months leading to the closure, Suissa contacted Rothner and asked him to loan Salem Village “an amount proportionate to the interest” of trusts associated with the company for payroll funding, according to Kim’s letter.

The trusts provided $1.3 million in loans between August 2023 and February 2024 and were used by Salem Village to “satisfy its obligations to continue its operations,” according to Kim’s letter.

“[Salem Village] has not been able to satisfy its debts to any creditors, including the trusts, nor do any assets remain to satisfy them,” Kim’s letter said.

Burglary incidents

After Salem Village closed, two city ordinance violations were issued to the building in October 2024. The violation notices are posted on the entrance of the building.

Both notices said there was an “unlawful accumulation” of hay, grass, straw, weeds and dead tree limbs on the property.

The Salem Village building also has been the subject of at least two burglary incidents since October, as well, according to the Joliet Police Sgt. Dwayne English.

About 5 p.m. on Oct. 1, 2024, officers responded to a report of suspicious vehicles parked at Salem Village and saw four people exit one of the doors of the building, police said.

Officers apprehended Juan Neri-Lopez, 34, of Joliet, who was accused of possessing a pipe for smoking narcotics and a key to the building, English said.

About 8:40 p.m. on Jan. 10, officers responded to Salem Village for a report of a burglary and found Michael Felker, 44, of Rockdale, who was accused of cutting copper wires with a saw, English said.

“Felker indicated he was cutting the copper pipe in hopes of later selling it. Upon search of Felker, officers recovered suspected methamphetamine and heroin,” English said.