Bribes Spell 3-Year Sentence for Hospital CEO

MANHATTAN (CN) - The former CEO of Medisys Health Network will serve three years for conspiring to bribe New York lawmakers with hundreds of thousands of dollars in exchange for official acts.

U.S. District Judge Jed Rakoff convicted David Rosen, 64, of Harrison, N.Y., in September 2011 after a three-week bench trial. He imposed the sentence Monday.

The bribery conspiracy involved Assemblymen William Boyland Jr. and Anthony Seminerio, and state Sen. Carl Kruger.

In 2008, Rosen tried to bribe Kruger to steer more than $400,000 in state funds to MediSys, and help MediSys acquire the Caritas Hospitals in Queens.

"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," the U.S. Attorney's Office said.

Kruger, 62, who chaired the New York Senate Finance Committee, pleaded guilty in 2011 to taking nearly $500,000 in bribes in exchange for his official actions.

Rosen was also convicted of having MediSys or its affiliates make at least $400,000 in payments to Seminerio through a sham consulting company between 1999 and 2008.

"In exchange, Seminerio advocated on his behalf with New York State agencies concerning the discharge of a $19 million loan in 2006," prosecutors said.

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

Boyland, 41, who was acquitted in a jury trial in November 2011, received approximately $177,000 between 2003 and 2008 from MediSys. "In exchange, he took official action to benefit the company, including requesting that the speaker of the assembly award millions of dollars to Brookdale Hospital," prosecutors said.

Rosen faced up to 70 years in prison and $250,000 fines for the crimes of which he was convicted: two counts of honest services fraud, honest services fraud conspiracy, and two counts of conspiracy to commit bribery and to violate the Travel Act.

Michael Turano, 50, a Brooklyn-dwelling gynecologist, was sentenced to two years for conspiring to bribe Kruger. Robert Aquino, the former CEO of Parkway Hospital, received a four-month sentence for similar charges last week.

Richard Lipsky, 65, a lobbyist, pleaded guilty in January and will be sentenced on Sept. 12.

Real estate developer Aaron Malinsky, of New York City, got a deferred prosecution agreement.

Solomon Kalish, 61, the owner of Adex, pleaded guilty in January and will be sentenced on May 22.

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