Press Releases

Health Care Consultant Sentenced In Manhattan Court To Two Years In Prison For Bribing New York State Senator Carl Kruger

FOR IMMEDIATE RELEASE
Tuesday May 22, 2012

Preet Bharara, the United States Attorney for the Southern District of New York, announced that SOLOMON KALISH, a health care consultant, was sentenced today in Manhattan federal court to two years in prison for participating in a scheme to bribe New York State Senator Carl Kruger.  KALISH pled guilty to one count of conspiracy to commit honest services fraud in January 2012.  He was sentenced by U.S. District Judge Jed S. Rakoff.

Manhattan U.S. Attorney Preet Bharara said: “Solomon Kalish used his consulting company as a conduit of corruption, funneling money from his clients to Michael Turano and Carl Kruger, in exchange for political favors and extra cash.  Today’s sentence is a fitting conclusion to his role in polluting our political process.”

According to the Complaint, the Indictment, and statements made at KALISH’s plea
proceeding:

KALISH owned and operated Adex Management, Inc. (“Adex”), a marketing/ consulting firm incorporated in June 1992, which brokered relationships in the healthcare industry.  Between 2007 and 2011, KALISH, through Adex, received approximately $320,000 in fees from his clients, and paid more than half of these fees – approximately $197,005 – to Olympian Strategic Development Corp. (“Olympian”), a consulting company controlled by Michael Turano, a Manhattan-based gynecologist, who had a close relationship with Kruger.  KALISH did so with the understanding that, in exchange for a portion of the fees paid to Olympian, Senator Kruger, in connection with his official position, would take actions to assist KALISH’s clients or third-parties.  According to the Complaint, numerous individuals and entities – including David Rosen, the then-Chief Executive Officer of the MediSys Health Network, and Robert Aquino, the then-Chief Executive Officer of Parkway Hospital – made payments directly or indirectly to Adex, in exchange for Senator Kruger’s official actions.

*                *                *

In addition to the prison term, Judge Rakoff sentenced KALISH, 61, of Rockville Centre, New York, to two years of supervised release.  KALISH was also ordered to pay a $10,000 fine and a $100 special assessment fee.

KALISH was initially charged on March 10, 2011, along with seven others, including
Kruger, Turano, Rosen, Aquino, professional lobbyist Richard Lipsky, real estate developer Aaron Malinsky, and NewYork 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, Boyland, Jr., and former New York State Assemblyman Anthony Seminerio, who himself pled guilty to one count of honest services mail fraud and was sentenced in February 2010 to six years in prison.  Seminerio passed away while his case was on direct appeal and the cause of action against him was abated.

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.

The Government entered into a deferred prosecution agreement with Malinsky, 63, of New York, New York, on November 22, 2011.

Boyland, 41, of Brooklyn, New York, was acquitted by a jury on November 10, 2011.

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

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

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