Former Queens Hospital Executive Sentenced in Manhattan Federal Court to Four Months in Prison for Bribing Former New York State Senator Carl Kruger

Preet Bharara, the United States Attorney for the Southern District of New York, announced that ROBERT AQUINO, the former chief executive officer (CEO) of Parkway Hospital in Queens, was sentenced today in Manhattan federal court to four months in prison for bribing former New York State Senator Carl Kruger. AQUINO pled guilty to one count of conspiracy to commit bribery in January 2012. He was sentenced by U.S. District Judge Jed S. Rakoff.

Manhattan U.S. Attorney Preet Bharara stated: “Instead of pursuing legitimate political process to try to keep Parkway Hospital open, CEO Robert Aquino resorted to bribery. Mr. Aquino’s ill-conceived plan to corruptly influence the political process has him bound for prison. As today’s sentence demonstrates, like others before it, those who engage in public corruption will not go unpunished.”

According to the complaint, the indictment, and statements made at AQUINO’s plea proceeding:

AQUINO served as the chief executive officer of Parkway Hospital in Queens, New York. When Parkway Hospital was slated to be closed by New York state in the summer of 2008, AQUINO caused Parkway Hospital to make $60,000 in payments to Adex Management Inc. (“Adex”), a company in which former New York State Senator Carl Kruger had an interest. Adex paid half of the $60,000 it received from Parkway Hospital to Olympian Strategic Development Corp., a consulting company controlled by Michael Turano, who had a close relationship with Kruger. AQUINO understood that in exchange for making the payments to Adex, Senator Kruger would undertake official action in his capacity as a member of the New York State Senate to help keep Parkway Hospital open.

* * *

In addition to the prison term, Judge Rakoff sentenced AQUINO, 55, of Glen Head, New York, to two years of supervised release and ordered him to pay a $100 special assessment fee.

AQUINO was initially charged on March 10, 2011, along with seven others, including Kruger; Turano; Richard Lipsky, a lobbyist; Solomon Kalish, the owner of Adex; David Rosen, the former CEO of MediSys Health Network; real estate developer Aaron Malinsky; and New York State Assemblyman William Boyland, Jr.

Kruger, 62, and Turano, 50, who both reside in Brooklyn, New York, pled guilty in December 2011 and were sentenced on April 26, 2012, to seven and two years in prison, respectively.

Rosen, 64, of Harrison, New York, was convicted at a bench trial on September 12, 2011, for his involvement in schemes to bribe Kruger, former New York State Assemblyman Anthony Seminerio, and Boyland. He is scheduled to be sentenced on May 7, 2012 at 3:30 p.m.

Kalish, 61, of Rockville Centre, New York, pled guilty on January 18, 2012, and is scheduled to be sentenced on May 22, 2012 at 4:00 p.m.

Lipsky, 65, of New York, New York, pled guilty on January 4, 2012, and is scheduled to be sentenced on September 12, 2012 at 2:30 p.m.

Boyland, 41, of Brooklyn, New York, was acquitted by a jury on November 10, 2011. The government entered into a deferred prosecution agreement with Malinsky, 63, of New York, New York, on November 22, 2011.

Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.

This prosecution is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Glen McGorty, Michael Bosworth, and Kan Nawaday are in charge of the prosecution.