Preet Bharara, the United States Attorney for the Southern District of New York, announced that New York State Senator CARL KRUGER was sentenced today to seven years in prison for engaging in bribery schemes in which he accepted hundreds of thousands of dollars in bribes in exchange for taking official actions. As part of the schemes, the corrupt payments intended for KRUGER were directed to bank accounts controlled by MICHAEL TURANO, a Manhattan-based gynecologist, who was sentenced today to two years in prison for his role in the schemes. KRUGER and TURANO were sentenced by U.S. District Judge Jed S. Rakoff.
Manhattan U.S. Attorney Preet Bharara stated: “Today’s sentencing of Carl Kruger and Michael Turano takes us one step closer to closing this sorry chapter in the continuing story of public corruption in New York State and City government. And the moral is that when elected officials violate their oaths of office and betray their constituents by putting personal interests and enrichment above their duty as public servants, they will be brought to justice.”
According to the Indictment, other documents filed in the case, and statements made during plea proceedings,
From 1994 to 2011, KRUGER served as a member of the New York State Senate, representing Bergen Beach, Flatlands, Mill Basin and other Brooklyn communities in the 27th Senate District. From 2009 to the beginning of 2011, he was chairman of the Senate Finance Committee. KRUGER had a close relationship with TURANO and was effectively a member of his family.
From 2007 through March 2011, lobbyist Richard Lipsky directed approximately $260,000 of his lobbying fees to Olympian Strategic Development Corporation and Bassett Brokerage, two entities controlled by TURANO. In exchange for the payments made to Olympian and Bassett, KRUGER undertook official action to benefit Lipsky and his lobbying clients. Further, from 2007 through March 2011, healthcare consultant Solomon Kalish directed approximately $197,000 to Olympian that had been paid to Adex by third parties, including Robert Aquino, the Chief Executive Officer of Parkway Hospital in Queens, New York, through his marketing/consulting firm, Adex Management, Inc. Aquino caused the hospital to make $60,000 in payments to Adex. In exchange for the payments made to Adex, KRUGER undertook official action to benefit Kalish, Adex, and the third parties paying Adex.
At his plea proceeding, KRUGER admitted that from 2007 through March 2011, he agreed to undertake action, in connection with his official position as a member of the New York State Senate, to benefit Lipsky, Kalish, Aquino, and TURANO, in exchange for payments that he directed to Olympian, Bassett, Adex, and the individuals who had an interest in those entities.
TURANO admitted that from late 2007 through February 2011, his consulting business received payments from Lipsky, Kalish, Aquino and associated entities knowing that the money was paid, in part, in exchange for KRUGER taking acts in his official capacity as a member of the New York Senate to benefit those individuals and entities.
In addition to their prison terms, KRUGER, 62, of Brooklyn, New York, and TURANO, 50, of Brooklyn, New York, were each sentenced by Judge Rakoff to two years of supervised release, and each ordered to forfeit $223,534.
KRUGER and TURANO were initially charged on March 10, 2011, along with six others, including Lipsky, Kalish, Aquino, David Rosen, the former CEO of MediSys Health Network, real estate developer Aaron Malinsky, and New York State Assemblyman William Boyland, Jr.
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.
Aquino, 55, of Glen Head, New York, pled guilty on January 3, 2012 and is scheduled to be sentenced on May 1, 2012 at 4:00 p.m.
Lipsky, 65, of New York, New York, pled guilty on January 4, 2012 and is awaiting sentencing.
Kalish, 61, of Rockville Centre, New York, pled guilty on January 18, 2012 and is scheduled to sentenced on May 22, 2012 at 4:00 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.