Former MediSys CEO Guilty in Queens Hospital Corruption Case

An ongoing investigation that has already led to the conviction of one politician has continued to expose the corrupt backroom dealings between hospital executives in Queens and Albany officials.

David Rosen, former CEO of MediSys Health Networks, which oversees several local health facilities including Jamaica and Flushing hospitals, was found guilty in a Manhattan federal court of participating in a scheme to bribe state legislators.

“If there were any doubt about the pervasive nature of public corruption in Albany, today’s multi-count conviction of David Rosen should put it to rest once and for all,” said Manhattan U.S. Attorney Preet Bharara. “While this verdict is a very sad commentary on the state of affairs in Albany, it also should send a clear message that we will pursue those who violate the public trust and hold them to account.”

Federal investigators alleged that as hospitals in Queens were struggling financially, hospital executives were actively attempting to bribe state officials for favors. According to the charges, Rosen paid former state Assemblyman Anthony Seminerio of Richmond Hill, state Assemblyman William Boyland Jr. and state Senator Carl Kruger, both from Brooklyn, either directly through no-show consulting jobs or indirectly through favorable hospital contracts that benefited the men.

Seminerio, who received more than $400,000 from Rosen through a sham consulting company, advocated for MediSys in Albany and co-sponsored legislation to provide secured financing options to the company in 2006. He pled guilty to a count of honest services fraud in February 2010 and was sentenced to six years in prison.

Seminerio died in a North Carolina federal prison in January while his case was on appeal.

Charges have been filed against the current Brooklyn politicians, Kruger and Boyland Jr., and their cases are pending. Also charged in the investigation is Robert Aquino, former CEO of Parkway Hospital in Forest Hills, who allegedly, like Rosen, bribed politicians to help his struggling hospital.

Rosen’s conviction followed a three-week bench trial. He faces a maximum of 70 years in prison.

By Eric Yun


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