New York Attorney General Letitia James has requested a court-appointed caretaker to oversee the Cold Spring Hills nursing home in Woodbury.
James had previously sued the nursing home, alleging fraud and resident neglect.
According to the lawsuit, the owners funneled $22.6 million in Medicaid and Medicare away from patient care and into fraudulent companies.
The nursing home is also in a battle with its workers over health benefits, which could be terminated on Oct. 15.
The case will be heard in court on Oct. 2.
Cold Spring Hills has not returned requests for comment.