A bribery and kickback scheme helped a former hospital manager who oversaw a $50 million hospital expansion and used hospital contractors to pay nearly $500,000 in personal bills and home renovations, according a press release issued by Massachusetts Attorney General Martha Coakley and the Salem News.
Paul Galzerano, a former associate VP of support services at Beverly Hospital in Beverly, Mass., was indicted by an Essex County Grand Jury on charges of commercial bribery and larceny over $250. Between 2003 and 2006, while overseeing a hospital expansion project, Galzerano repeatedly solicited and received kickbacks and bribes totaling nearly $500,000 from contractors working on the renovation.
Two contractors on the hospital project submitted inflated proposals for work at the hospital and the difference paid Galzerano's mortgage and credit card bills, prosecutors allege.
One contractor allegedly paid $270,000 in kickbacks to the Galzerano. Another allegedly did $70,000 worth of "substantial landscaping, painting and other work" on Galzerano's home for free, prosecutors say.
Another contractor worked on Galzerano's driveway and submitted a bill to the hospital for $10,000. Galzerano OK'ed the payment, prosecutors allege.
Galzerano bought antiques at a local store, said they were for the hospital, and had the dealer send the bill to one of the hospital's vendors, according to the attorney general's office.
"We allege that this defendant abused his position of trust at the hospital to steal valuable merchandise and execute an elaborate kickback scheme to have thousands of dollars of work performed at his home," Coakley said. "At a time when healthcare costs are at a premium, we allege that this defendant put his own personal interests ahead of the interests of the hospital.
To learn more:
- read the press release from the Coakley's office
- read the Salem News article