Leonard Grunstein, 61, who resigned from the bar in 2012, pleaded guilty Wednesday in Manhattan Supreme Court to third-degree perjury, a class A misdemeanor. The plea stemmed from a 2004 transaction in which Grunstein, a former Troutman Sanders partner, and his business partner and real estate investor Rubin Schron acquired the assets of a company operating nursing homes and created a new entity with the assets. In the deal, Schron supplied a $100 million loan and was granted an option to acquire a controlling interest in SV Care Holdings, the parent of the new entity.
In 2010, Schron indicated plans to exercise the option, but Grunstein and others sued, claiming Schron failed to fund the $100 million loan. Schron countered with his own suit.
At a January 2011 deposition on the civil matters, Grunstein said he told one of Schron’s attorneys the loan had not been funded, but in fact the conversation never occurred. During his allocution Wednesday before Manhattan Acting Supreme Court Justice Charles Solomon, Grunstein read from a plea agreement, saying, “I intentionally made a false statement that I did not believe to be true.”
The Appellate Division, Second Department, accepted Grunstein’s resignation in December 2012.
Grunstein is scheduled for sentencing on Feb. 4. Under the agreement, he will pay a $1,000 fine, agree to 150 hours of community service and forfeit his ability to seek reinstatement as an attorney.
Manhattan assistant district attorney Richard Buckheit, senior investigative counsel to the Rackets Bureau, handled the case for the prosecution. Dani James of Kramer Levin Naftalis & Frankel represented Grunstein.
Grunstein took a leave of absence from Troutman in November 2009.