New York Health/Hospital System CEO and 2 State Senators Charged with Fraud-Funneling Illegal Payments to State Lawmakers

MediSys is on of the largest Medicaid managed care plans in the city and the 2 lawmakers were those that helped MediSys try to acquire bankrupt hospitals in Queens. In total, there were 8 charged.

Mr. Rosen, the CEO is charged with paying off the others with consulting fees in the scheme. Mr. Rosen in exchange for the money is charged with being able to obtain grants. In short the 2 lawmakers are questioned about receiving bribes from the hospital system CEO. State Sen. Carl Kruger is stated as taking as much as 1 million in bribes from Mr. Rosen since 2006 and is also accused of taking bribes from another rival hospital CEO, Parkway, which is now closed. MediSys has over $ 2 Billion in annual revenue with 11,000 employees, and owns interest in several managed care companies. This one will be interesting to see how this all comes out in court and I would guess someone has some accounting records along the way to substantiate all of this. BD

Manhattan federal prosecutors on Thursday charged two New York legislators and a powerful health-care executive with engaging in a influence-peddling scheme that spread through a wide range of interests looking for favors from Albany.

David Rosen, CEO of Queens-based MediSys Health Networks, which controls several hospitals and one of the largest Medicaid managed-care plans in the city, is accused of funneling illegal payments to the two lawmakers, who helped MediSys try to acquire two bankrupt hospitals in Queens

State Sen. Carl Kruger and Assemblyman William Boyland Jr., both Democrats from Brooklyn, were expected to surrender in Manhattan Federal Court. Six others, including the chief executive of a $1 billion Medicaid network in Queens and a well-known lobbyist, were charged in the alleged scheme.