St. Vincents investigated for fraud over allegations it purposely flubbed finances

New York /
Aug.August 22, 2011 09:28 AM

St. Vincent’s Hospital is the subject of an investigation by the Manhattan district attorney’s fraud unit over accusations that it purposely allowed its finances to slip so it could be sold to a private developer, the New York Post reported. Investigators are examining significant payments to top executives at the hospital, sources said.

“This was a well-thought-out plan,” said Tom Shanahan, a lawyer for a group of former St. Vincent doctors and nurses that is suing the hospital. “They wanted out and had to justify it to the state. They were running it into the ground.”

Former hospital CEO Henry Amoroso oversaw the excessive spending, which led to $1 billion in debt and bankruptcy. If not for the bankruptcy, state officials would not have allowed the hospital to close, sources told the Post.

The U.S. Bankruptcy Court for the Southern District of New York approved the $260 million sale of the Saint Vincent’s Catholic Medical Center to the Rudin family and North Shore-LIJ in April, paving the way for a new emergency response medical center and a mixed-use residential project on Seventh Avenue. [Post]


Related Articles

arrow_forward_ios
Mariah Carey with 855 Davis Drive (Getty Images, Zillow)
Mariah Carey lists Atlanta mansion for $6.5M
Mariah Carey lists Atlanta mansion for $6.5M
murder-for-hire
Murder-for-hire allegedly involved $45M real estate portfolio
Murder-for-hire allegedly involved $45M real estate portfolio
Childs Memorial Temple, Metropolitan AME, and Greater Bethel AME Harlem
Harlem church leaders struck secret deals with developer over sales
Harlem church leaders struck secret deals with developer over sales
Former Malaysia prime minister Najib Raza
Ex-PM ordered to prison in 1MDB scandal
Ex-PM ordered to prison in 1MDB scandal
Belkin Burden Goldman's Sherwin Belkin (Belkin Burden Goldman, Illustration by The Real Deal with Getty)
Rent regulation threat sparks red scare among real estate
Rent regulation threat sparks red scare among real estate
Donald Trump and Allen Weisselberg with Trump Tower
Ex-Trump CFO Allen Weisselberg pleads guilty, will testify against firm
Ex-Trump CFO Allen Weisselberg pleads guilty, will testify against firm
Council member Keith Powers (Manhattan Community Board 5)
Defeated by industry, criminal background check bill returns
Defeated by industry, criminal background check bill returns
Letitia James  with 18-36 Columbus Avenue (Getty, Loopnet)
Rockland County “fraudster” banned from real estate
Rockland County “fraudster” banned from real estate
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...