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Kickback Scandal Rocks NYC Hospital
WASHINGTON — In a shocking display of corruption, two individuals and three corporations were sentenced to prison and fines for their roles in an eight-year conspiracy involving kickbacks to defraud New York Presbyterian Hospital (NYPH). The scheme, which netted over $2.3 million in kickbacks, was centered around former vice president of facilities operations Santo Saglimbeni.
Moshe Buchnik, president of an asbestos abatement company that did business at NYPH, was sentenced to 48 months in jail and a $500,000 criminal fine for his role in the conspiracy. Michael Yaron, owner of Cambridge Environmental & Construction Corp, was sentenced to 60 months in jail and a $500,000 criminal fine. Cambridge/NEA and Oxford Construction & Development Corp, both owned by Yaron, were each sentenced to a $1 million criminal fine.
Artech Corp, a company owned by a relative of Saglimbeni, was also sentenced to a $1 million criminal fine. The scheme involved Saglimbeni awarding contracts to Yaron and Buchnik in exchange for kickbacks, which were then funneled through a sham company created by Saglimbeni.
The investigation, led by the Antitrust Division’s New York Field Office, uncovered a web of corruption that went far beyond the hospital’s walls. Including today’s sentencings, 14 individuals and six companies have been convicted of or pleaded guilty to charges arising out of this investigation.
The sentences imposed today are a stark reminder of the consequences of corruption. ‘The sentences imposed today are consistent with the seriousness of the crimes for which the individuals and companies were found guilty,’ said Acting Assistant Attorney General Joseph Wayland.
Anyone with information concerning bid rigging, bribery, tax offenses, or fraud at NYPH should contact the Antitrust Division’s New York Field Office at 212-335-8000 or visit www.justice.gov/atr/contact/newcase.htm.
The FBI’s New York Division is also seeking information and can be reached at 212-384-1000.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release ↗
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