AUSTINTOWN, Ohio (WKBN) – The former California Palms in Austintown has a new owner.
GEM Consulting Group, LLC closed on the property at 5455 Clarkins Drive Monday for $6.5 million.
GEM Consulting registered with the Ohio Secretary of State on Aug. 26, 2022. Its authorizing agent is listed as Moshe Saffer.
Saffer is connected to inactive business filings in Florida for Destination Hope Recovery Inc., with a filing address in Miami Beach. He is also listed as the agent for GEM Management Group LLC, an active filing with an address in Hollywood, Florida.
The sale comes after a judge ruled in May that the previous owner, Sebastian Rucci, will not be allowed back into the property.
Rucci, his staff and the remaining clients were evicted from the hotel-turned-recovery center.
The property has gone through several owners from its beginnings as a hotel, then to Hotel California and California Palms recovery center.
Pender Capital foreclosed on the property and it was sold to GEM Consulting.
The property has made headlines from its time as Hotel California and then its transformation into a recovery center that was raided in October 2021 when dozens of federal, state and local investigators swarmed the facility, looking for evidence of Medicaid fraud. Over $580,000 of funds were seized from the company.
No criminal charges were filed, the business went into bankruptcy, and the case is still going through federal court.