Another NY Political Corruption Conviction

MANHATTAN (CN) - The former CEO of Medisys Health Network was convicted Monday of conspiring to bribe three state lawmakers with hundreds of thousands of dollars in exchange for official acts. David Rosen, 63, of Westchester County, was convicted after a 3-week bench trial before a federal judge.

Rosen was accused of conspiring to bribe Assemblymen William Boyland Jr. and Anthony Seminerio, and state Senator Carl Kruger.

In 2008, ROSEN attempted to bribe Kruger in connection with Kruger's efforts to provide official assistance to MediSys, including steering over $400,000 in New York State funds to MediSys and helping MediSys in its efforts to acquire the Caritas

Hospitals in Queens," the U.S. Attorney's Office said in announcing the verdict.

"To that end, Rosen caused Brookdale Hospital, a member of the MediSys health network, to enter into a contract with Compassionate Care Hospice, knowing that Kruger had an interest in the hospice contract."

His bribery efforts with Seminerio and Boyland were simpler, prosecutors said: "Between 1999 and 2008, Rosen caused MediSys or its affiliates to make over $400,000 in payments to Seminerio through a sham consulting company. In exchange, Seminerio advocated on his behalf with New York State agencies concerning the discharge of a $19 million loan in 2006."

As for Boyland, prosecutors said: "Between 2003 and 2008, Rosen ... caused MediSys to make corrupt payments to Boyland though a no-show consulting job that paid him approximately $35,000 a year. In exchange for the approximately $177,000 that Boyland received between 2003 and 2008 from MediSys, he took official action to benefit the company, including requesting that the Speaker of the Assembly award millions of dollars to Brookdale Hospital."

Rosen, 63, was convicted of two counts of honest services fraud, honest services fraud conspiracy, and two counts of conspiracy to commit bribery and to violate the Travel Act. He faces up to 70 years in prison and $250,000 fines for each offense.

His bench trial was before U.S. District Judge Jed Rakoff.

Seminerio pleaded guilty to honest services mail fraud and was sentenced in February to 6 years in prison. He died while appealing.

Charges against Kruger and Boyland are pending.

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.

Email *

Submit