Two members of the New York State Legislature charged for accepting bribes

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Two members of the New York State Legislature charged for accepting bribes

2011-03-11 06:02:47 GMT+7 (ICT)

NEW YORK (BNO NEWS) -- Two members of the New York State Legislature on Thursday were charged for accepting bribes worth thousands of dollars in exchange for official acts, the New York Office of the Federal Bureau of Investigation (FBI) announced.

N.Y. State Senator Carl Kruger and State Assemblyman William Boyland Jr. were charged for participating in bribery schemes. In addition, six others were charged as well, including a lobbyist, two hospital CEOs, a health care consultant, and a real estate developer.

"Today's complaint describes a broad-based bribery racket reflecting an unholy alliance of politicians, lobbyists, and businessmen. Every single time we arrest a state senator or assemblyman, it should be a jarring wake-up call," said Preet Bharara, U.S. Attorney for the Southern District of New York.

Kruger is accused of taking more than $1 million in bribes from, among others, lobbyist Richard Lipsky, real estate developer Aaron Malinsky, and health care consultant Solomon Kalish, all of whom are also charged.

Davin Rosen, the CEO of MediSys Health Network, was also charged with conspiring to bribe Kruger, as well as with paying over $177,000 in bribes to N.Y. State Assemblyman Boyland in exchange for official acts.

On the other hand, Robert Aquino, former CEO of Parkway Hospital in Queens, was accused of bribing Kruger. Michael Turano was charged with laundering Kruger's bribes.

Turano, a Manhattan-based gynecologist, laundered the illegal profit through two shell companies he established. Senator Kruger and Assemblyman Boyland face a maximum sentence of 20 years in prison, as well the other six defendants.

Kruger has served as a member of the New York state senate since 1994. From at least 2006 through March 2011, he received bribes totaling at least $1 million in exchange for taking official actions on behalf of other people.

The Senator funneled the illegal money to the bank accounts of Strategic Development Corp. and Bassett Brokerage, which were established by Turano. Kruger had an intimate relationship with the Turano family.

Lipsky, a lobbyist and the principal of Richard Lipsky Associates, Inc., paid approximately $252,000 to the Olympian account in exchange for actions that benefited his clients.

Malisnky directed around $472,500 to the same account in exchange for Kruger's official action to benefit him in a certain real estate development project in Brooklyn. Kruger also took positions at a public hearing in favor of that project.

Health care consultant Kalish gave $197,000 in bribes for official actions in behalf of Adex Management, a marketing/consulting firm. Through Adex, Aquino directed $30,000 for Kruger's lobbying of New York state officials in connection with Parkway Hospital's efforts to acquire certain other hospitals.

Between 199 and 2008, Rosen similarly attempted to bribe the Senator as MediSys intended to acquire the same hospitals. Rosen sought to bribe three elected officials, Kruger, Boyland, and former New York State Assemblyman Anthony Seminerio.

Rosen caused MediSys to make approximately $390,000 in payments to Seminerio in exchange for many benefits, including a co-sponsored legislation to provide a secured financing option to MediSys in 2006.

Rosen caused Boyland to be hired for what amounted to a no-show consulting job that paid him approximately $35,000 a year between 2003 and 2008. In exchange for the total $177,000, Boyland took official action to benefit MediSys, including requesting that the Speaker of the Assembly award millions of dollars to Brookdale Hospital, a member of its health network.

"The complaint lays out a roadmap of bribery, money laundering, influence-peddling, and official misconduct that is eye-opening even to seasoned investigators. The web of graft and corruption, of buying and selling influence, is not what representative democracy is supposed to look like," said FBI Assistant Director in Charge Janice Fedarcyk.

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