September 12, 2011 / 10:05 PM / in 6 years

Hospital executive found guilty in New York corruption probe

NEW YORK (Reuters) - A former hospital executive was convicted on Monday of conspiracy and fraud for creating fake consulting contracts to funnel money to New York state legislators in exchange for influence in Albany.

David Rosen, who was chairman of MediSys Health Network, a not-for-profit hospital and healthcare group, had been indicted in April along with former state assemblyman William Boyland, Jr., state senator Carl Kruger and others. But Rosen’s case was severed from the other defendants.

“This is a sad, even tragic case,” U.S. District Judge Jed Rakoff said in an opinion finding Rosen guilty after a month-long bench trial in Manhattan federal court.

“It reveals how a widely-admired hospital administrator who diligently sought to better the health care of impoverished communities nonetheless chose to entangle himself in the bribing of state legislators.”

Rosen, 63, was found guilty of five conspiracy and fraud counts for creating the fake consulting contracts in exchange for the politicians’ help and influence in Albany, the state’s capital.

Kruger and Boyland have pleaded not guilty and intend to fight the charges at trial.

A lawyer for Rosen, Scott Morvillo, said Rosen was exploring his options.

“After 40 years of diligent service to the healthcare community, David Rosen is devastated by the court’s findings,” Morvillo said in a statement.

Reporting by Basil Katz; Editing by Eileen Daspin and Cynthia Johnston

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