A former associate vice president for Beverly Hospital has been indicted in connection with using contractors involved in the hospital’s renovation to pay his personal bills and to perform extensive renovations on his home.
Between 2003 and 2006, while employed as associate vice president of support services at Beverly Hospital, Paul Galzerano, 58, of Groveland, oversaw a major multi-million dollar renovation of the hospital’s facilities. Galzerano repeatedly solicited and received kickbacks and bribes totaling nearly $500,000 from contractors working on the renovation, according to authorities. Authorities allege that the kickbacks to Galzerano ensured that the contractors would be granted lucrative contracts to do renovation work on the hospital.
Three contractors indicted in connection with helping Galzerano with his scheme are Brian Lemay, 53, of Andover, and John Kane, 51, of Hanover, both charged with commercial bribery. Lemay and Alfred Cunsolo, 52, of Methuen, are each charged with larceny over $250.
"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," Attorney General Martha Coakley said. "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. We thank Beverly Hospital for their full cooperation throughout this investigation."
Authorities said Lemay owned a large company that specialized in HVAC services for hospital construction projects, and Kane had a general contracting business that specialized in medical facilities construction. Cunsolo owned a small general contracting company that did some renovations in different areas of the hospital.
Galzerano and Lemay allegedly inflated the prices of proposals submitted for hospital work, and the difference in the inflated costs would be paid back to Galzerano as payments for his personal bills. Lemay provided kickbacks to Galzerano in the form of approximately $270,000 in payments to Galzerano’s personal credit card bills and mortgage payments, according to authorities.
Investigators also discovered that some of the contractors performed various renovations at Galzerano’s residence free of charge in return for favorable consideration in future hospital contracts. Kane allegedly performed and paid for substantial landscaping, painting, and other work done at Galzerano’s property totaling more than $70,000. In addition, investigators discovered Galzerano hired another hospital contractor, Cunsolo, to perform driveway work at his house. Galzerano then allowed Cunsolo to bill the hospital approximately $10,000 for the driveway work, which Galzerano approved for payment.
In the course of the hospital’s renovations, Galzerano also moved a century-old grandfather clock and two valuable paintings to his home. The total value of the stolen antiques and paintings is approximately $25,000.
Galzerano has been indicted by an Essex County grand jury on three counts of commercial bribery and four counts of larceny over $250.
