2011-04-08 / Top Stories

MediSys Bigwig Indicted By Feds For Bribing Pols

Health Care System Runs Peninsula Hospital Center
By Howard Schwach

David Rosen former CEO of MediSys David Rosen former CEO of MediSys A healthcare bigwig, the former CEO of the giant MediSys Health Care company that runs the Peninsula Hospital Center locally, has been indicted by federal prosecutors for bribing three Brooklyn politicians to get benefits for the organizations he controlled.

David Rosen was fired two weeks ago from the healthcare conglomerate, which owns PHC, Jamaica Hospital Center, Brookdale University Hospital and Medical Center, and Flushing Hospital Medical Center, as well as several other smaller healthcare units around the city. He was arrested last month for funneling money through shell companies and bribing State Senator Carl Kruger, among others.

The government prosecutors allege that Rosen bribed Kruger, Assemblyman Anthony Seminerio, who recently died in prison, and Assemblyman William Boyland “in order to obtain their support in state matters.”

David Rosen (right), at a ribbon cutting ceremony at the Jamaica Hospital center, along with Assemblywoman Audrey Pheffer and Assemblyman Rory Lancman. David Rosen (right), at a ribbon cutting ceremony at the Jamaica Hospital center, along with Assemblywoman Audrey Pheffer and Assemblyman Rory Lancman. From 1999 to September of 2008, Rosen is accused of paying bribes, disguised as fraudulent consulting fees to Seminerio, of about $40,000 a year. In total, MediSys paid Seminerio $390,000.

From 2003 to September of 2008, he is accused of having MediSys pay consulting fees of about $177,400, to Boyland and Seminerio for performing official state duties, the complaint alleges.

During the same time period, the federal complaint alleges, MediSys and Rosen paid some $1 million in bribes to Kruger.

In return for the bribes, the three advocated for MediSys and other healthcare companies that were also paying bribes during that time.

For example, because of Kruger’s advocacy for MediSys, the state discharged a $19 million loan and provided state funding for the company. In addition, Kruger urged state officials to let MediSys take over two other Queens hospitals – St. John’s Queens and Mary Immaculate Hospitals.

Rosen is charged with conspiracy to deprive New York State and its citizens of their legislators’ honest services, a charge that could bring 20 years in prison and a $250,000 fine.

Robert Movillo, Rosen’s attorney, told reporters that Rosen looks forward to proving his innocence at trial.

“Mr. Rosen has devoted 40 years of his life to improving the health care system in Queens at not-for-profit institutions and is anxious to clear his name and restore his reputation,” Movillo said.

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