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Queens Chronicle

Ex-hospital CEO gets 3 years for bribery

Rosen of MediSys going to prison for a decade of payoffs to electeds

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Posted: Thursday, May 10, 2012 12:00 pm

David Rosen, the former CEO of MediSys Health Network, a nonprofit corporation that runs Jamaica Hospital and Flushing Hospital Medical Center, was sentenced Monday to three years in prison by a Manhattan federal court for bribery.

Rosen, 64, of upstate Harrison will also spend two years under supervised release following his prison term, and is required to pay a $500 special assessment fee.

Rosen pleaded guilty to participating in a scheme of bribery to state Sen. Carl Kruger (D-Brooklyn), Assemblyman William Boyland Jr. (D-Brooklyn) and former Assemblyman Anthony Seminerio (D-Richmond Hill) that included an exchange upwards of $550,000 between the three officials involved.

Manhattan U.S. Attorney Preet Bharara said in a press release that Rosen bribed members of the state Legislature for over a decade to benefit himself and his company, MediSys Health Network

“David Rosen cast a wide, corrupt net in his efforts to enrich himself and his company,” Bharara said. “Today’s sentencing brings to conclusion this case, which involved hundreds of thousands of dollars of illegal payoffs, sham contracts and shell companies.”

Rosen was charged during a bench trial with two counts of honest services fraud, one count of honest services fraud conspiracy and two counts of conspiracy to commit bribery.

He was also charged with violating the Travel Act which is a crime that engages in any interstate or foreign travel, or using any mail or facility in foreign or interstate travel with the intent to “carry on” or “facilitate” any “unlawful activity.”

The scandal has been seen as casting light on the escalating corruption in Albany and on the all too familiar ties there between legislators and hospitals.

Elkan Abramowitz, Rosen’s lawyer, reportedly told the judge that he would be filing an appeal with haste on Rosen’s behalf, adding that he believes that his client maintains his innocence.

Prosecutors charged that Rosen used sham consulting deals to funnel money to Boyland and Seminerio.

He also directed business to a hospice care company from which Kruger, a Brooklyn Democrat who served as a member of the Senate since 1994, received a cut of the $400,000 he steered toward MediSys. Rosen performed this through a shell company named Olympian Strategic Development Corp. that has since failed.

Kruger resigned and was sentenced to seven years in prison.

Boyland, an Assembly member since 2003, was acquitted in a jury trial in November, but was later arrested on new bribery charges in January, and faces trial in Brooklyn.

Seminerio, who served in the Assembly from 1978 to 2009, pleaded guilty to fraud in an earlier case and subsequently died in prison in January 2011.

Dr. Robert Aquino, the former chief executive officer of Parkway Hospital in Forest Hills, was also sentenced to four months in prison for his role in the bribery of Kruger.

Aquino is alleged to have paid $60,000 to a shell company set up by Kruger.

“We will continue to aggressively pursue those who infect the political process,” Bharara said, “and bring them to justice.”

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