On September 3, 2020, a federal grand jury issued an indictment charging Chicago residents Zvi Feiner and Erez Baver with wire fraud.

The conduct underlying the indictment stems from substantially the same misconduct alleged in the SEC's complaint, filed on September 19, 2019 against Feiner, Baver, and Feiner's company FNR Healthcare, LLC. The Commission's complaint alleged that, beginning in 2014, the defendants raised approximately $10 million from at least 62 investors to acquire nursing homes and assisted living facilities throughout the Midwest. The defendants misrepresented to investors that their investments were low-risk and would generate high returns, and misappropriated investor funds for personal use and to pay distributions to earlier investors.

The court in the SEC case previously entered judgments against Feiner, FNR, and Baver, with certain monetary relief and penalties still to be determined by the court on motion by the SEC.