2011-08-19 / Top Stories

Rosen Case Goes To Jury

By Howard Schwach

When the story first broke that David Rosen, the CEO of MediSys, was arrested for bribing several state legislators on behalf of the healthcare giant, The Wave wondered editorially whether of not his actions would somehow harm the Peninsula Hospital Center, one of the hospitals owned by MediSys.

On Monday of this week, Peninsula was on the verge of closing down and MediSys had completely pulled away from the Rockaway hospital. And, Rosen awaited the federal court jury verdict that could well send him to prison for many years.

While MediSys officials said that the Rosen case and the failure of the Peninsula Hospital Center in Rockaway are in no way connected, many locals believe that the bribery scheme and the money that was funneled from the health care giant to the three legislators had to impact the money problems faced by PHC.

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.

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