Health Care Consultant Pleads Guilty in Manhattan Federal Court to Bribing New York State Senator Carl Kruger

Preet Bharara, the United States Attorney for the Southern District of New York, announced that SOLOMON KALISH, a health care consultant, pled guilty today in Manhattan federal court to bribing New York State Senator Carl Kruger. KALISH pled guilty before U.S. District Judge Jed S. Rakoff.

Manhattan U.S. Attorney Preet Bharara stated: “Solomon Kalish is the sixth and final defendant to be convicted in connection with a sprawling bribery scheme that ensnared a powerful New York State Senator, a lobbyist, two hospital CEOs, and a physician. Public corruption erodes the confidence of the citizenry in elected officials and we will do everything in our power to hold them accountable for their conduct.”

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

KALISH owned and operated Adex Management, Inc. (“Adex”), a marketing/consulting firm incorporated in June 1992, that brokers relationships in the health care industry. Between 2007 and 2011, KALISH, through Adex, paid $197,005 to Olympian Strategic Development Corp. (“Olympian”), a consulting company controlled by Michael Turano. Carl Kruger allegedly had a close relationship with Turano, a Manhattan-based gynecologist, and was effectively a member of his family. According to the Complaint, numerous individuals and entities—including David Rosen, the chief executive officer of the MediSys Health Network, and Robert Aquino, the chief executive officer of Parkway Hospital—made payments directly or indirectly to Adex, understanding that, in exchange for these payments, Senator Kruger would take official action to help them as opportunities arose.

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KALISH, 61, of Rockville Centre, New York, pled guilty to one count of conspiracy to commit honest services fraud. Kalish faces a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. He is scheduled to be sentenced by Judge Rakoff on May 22, 2012.

KALISH was initially charged on March 10, 2011, along with seven others, including Kruger, Turano, Richard Lipsky, a lobbyist, Rosen, Aquino, real estate developer Aaron Malinsky, and New York State Assemblyman William Boyland, Jr.

Rosen, 64, of Harrison, New York, was convicted at a trial before Judge Rakoff on September 12, 2011, for his involvement in schemes to bribe Kruger, former New York State Assemblyman Anthony Seminerio, and Boyland. Rosen is scheduled to be sentenced by Judge Rakoff on March 2, 2012.

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.

Kruger, 62, of Brooklyn, New York, pled guilty to two counts of conspiracy to commit honest services fraud and two counts of conspiracy to commit bribery on December 20, 2011.

Turano, 50, of Brooklyn, New York, pled guilty to one count of conspiracy to commit bribery on December 20, 2011. Kruger and Turano are scheduled to be sentenced by Judge Rakoff on April 26, 2012.

Aquino, 54, of Glen Head, New York, pled guilty to one count of conspiracy to commit bribery on January 3, 2012. Aquino is scheduled to be sentenced by Judge Rakoff on May 3, 2012.

Lipsky, 64, of New York, New York, pled guilty to one count of conspiracy to commit bribery and one count of bribery. Lipsky is scheduled to be sentenced by Judge Rakoff on May 4, 2012.

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, William Harrington, Michael Bosworth, and Kan Nawaday are in charge of the prosecution.