By Julie Manganis
Staff writer
—
BEVERLY — A former Beverly Hospital executive who oversaw a $50 million expansion project was indicted, along with several contractors, in a bribery and kickback scheme prosecutors say netted Paul Galzerano nearly $500,000.
Galzerano, 58, of Groveland, a former associate vice president at the hospital, is facing charges of commercial bribery and felony larceny in a series of indictments handed up yesterday and, secretly, in March, by an Essex County grand jury.
Prosecutors in Attorney General Martha Coakley's corruption and fraud division allege that Galzerano solicited and received kickbacks and bribes from contractors on the project.
Also indicted were three contractors: Brian Lemay, 53, of Andover, charged with bribery and larceny; Alfred Cunsolo, 52, of Methuen, charged with larceny; and John Kane, 51, of Hanover, charged with bribery.
Galzerano was the associate vice president of support services for the Herrick Street medical facility and oversaw the three-year expansion project.
While the hospital was undergoing renovations, Galzerano arranged for antiques, including a $10,000 century-old grandfather clock, paintings and other valuables, to be put into storage, prosecutors say.
But when the renovation was completed, the clock and two paintings were not returned to the hospital, prosecutors say. Those items were later found during a search of Galzerano's home in September 2008.
That search took place after unnamed hospital employees spotted pictures of some of the missing items in an online real estate listing for Galzerano's home. The items were worth a total of about $25,000.
Investigators also learned that Galzerano purchased some antiques at a local store, saying the items were for the hospital, and arranged for the dealer to send the bill to one of the hospital's vendors, according to the AG's office.
In the course of investigating the antiques thefts, spokesman Harry Pierre said, investigators came to learn about the much larger kickback and bribery scheme.
Two of the contractors on the hospital project, Lemay, who performed HVAC installations, and Kane, whose general contracting firm specialized in hospital construction, submitted inflated proposals for work on the hospital and the difference would then be paid to Galzerano through payments on his mortgage and credit card bills, prosecutors allege.
Lemay allegedly paid $270,000 in kickbacks to Galzerano.
Kane, meanwhile, allegedly performed at no cost to Galzerano "substantial landscaping, painting and other work" on Galzerano's home, work valued at more than $70,000, prosecutors say.
Cunzolo, meanwhile, worked on Galzerano's driveway, then billed the hospital for the work, worth about $10,000. Galzerano approved the payment, prosecutors allege.
Prosecutors say Galzerano asked for the kickbacks with the understanding that the contractors would continue to receive lucrative contracts for the project.
Coakley, in a press release, said Galzerano "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."
"At a time when health care costs are at a premium, we allege that this defendant put his own personal interests ahead of the interests of the hospital."
Coakley went on to note that the hospital, which had reported its suspicions to the AG, cooperated fully in the investigation.
Galzerano's attorney, Scott Gleason, who was seen at the courthouse where the grand jury was sitting yesterday, did not immediately return a call for comment.
Hospital spokeswoman Heather Jones released a statement thanking the Attorney General and investigators for their work on the case.
"Management at Northeast Hospital Corporation became aware of potential wrongdoing involving a former employee and brought its concerns to the attention of the office of Attorney General Martha Coakley," Jones said. "That office responded with a diligent and thorough investigation which has resulted in the issuance of indictments."
Earlier this year, in February, Galzerano was acquitted by a Haverhill District Court jury of charges that he threatened two neighbors with a gun in August 2008 after they complained about loud music.
A Groveland police officer who went into Galzerano's home noticed a number of valuable antiques, though no gun.
A few weeks later, police said they were contacted about stolen items from Beverly Hospital and, according to court papers, the officer in the gun threat case put two-and-two together.
Galzerano and his co-defendants are scheduled to be arraigned in Salem Superior Court on July 22.
