2011-07-29 / Top Stories

Former Hospital Big Accused Of Lying To Feds

By Howard Schwach

David Rosen, the former CEO of Medisys, which owns Peninsula Hospital Center. David Rosen, the former CEO of Medisys, which owns Peninsula Hospital Center. Once David Rosen was the CEO of MediSys, the large health provider that owned Peninsula Hospital Center, Jamaica Hospital, Brookdale Hospital and many other smaller health care units.

This week, it was announced that Peninsula Hospital Center in Rockaway was closing and Rosen faced federal prosecutors in court, accused of “lying repeatedly about the hospital’s financial relationship with local politicians.”

Federal prosecutors in Manhattan allege that Rosen paid hundreds of thousands of dollars in bribes to two state Assemblymen through purported consulting contracts and conspired to bribe a State Senator by using the services of a company in which the Senator had a financial interest.

From 1999 to September of 2008, Rosen is accused of paying bribes disguised as fraudulent consulting fees, to Anthony 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 William 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 Senator Carl 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.

Scott Morvillo, Kruger’s attorney, argued in his opening statement that the money paid to his client by MediSys was for legitimate consulting work.

Rosen’s attorney said that at no time did his client understand that the money he was paying was a bribe.

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