For Immediate Release - January 25, 2011

Former Beverly Hospital Contractor Pleads Guilty, Sentenced to Jail For Role in Commercial Bribery Scheme

Also Ordered to Pay Over $200,000 in Restitution

SALEM - A former hospital contractor has been sentenced to serve time in jail after pleading guilty to participating in a commercial bribery scheme at Beverly Hospital, Attorney General Martha Coakley's Office announced today.

Brian Lemay, age 53, of Andover, was sentenced today in Salem Superior Court to charges of Commercial Bribery and Larceny over $250. Lemay previously admitted his guilt and was sentenced today by Superior Court Judge John Lu to two years in the House Correction, six months to serve, with the balance suspended for a probationary period of three years. While out on probation, Lemay will be under a supervised curfew monitored by the Department of Probation. Judge Lu also ordered that Lemay pay full restitution in the amount of $216,841.21 and must also perform 250 hours of community service.

Three other defendants have been charged in this case. The former Associate Vice President for Beverly Hospital Paul Galzerano, age 58, of Groveland, has been charged in connection with using contractors involved in the hospital's renovation to pay his personal bills and to perform extensive renovations on his home and stealing several valuable antique items from the hospital. Galzerano faces charges of Commercial Bribery (3 counts) and Larceny over $250 (4 counts). He is due back in court for the start of his trial on March 11, 2011.

Two other contractors have also been charged in connection with helping Galzerano with his scheme. Alfred Cunsolo, age 52, of Methuen, is charged with of Larceny over $250. His next court date is February 8, 2011, for a pre-trial conference. John Kane, age 51, of Hanover, is charged with Commercial Bribery and is due back in court on February 16, 2011.

Between 2003 and 2006, while employed as Associate Vice President of Support Services at Beverly Hospital, Galzerano 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. Authorities allege that the kickbacks to Galzerano ensured that the contractors would be granted lucrative contracts to do renovation work on the hospital. 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 would inflate 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. 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 the 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.

On July 1, 2010, an Essex County Grand Jury returned indictments against Lemay. He was arraigned on July 22, 2010, in Salem Superior Court where he pled not guilty and was released on personal recognizance. Lemay previously entered a guilty plea and sentencing was continued until today.

The case is being prosecuted by Assistant Attorney General Lee Hettinger, of AG Coakley's Corruption and Fraud Division, and was investigated by financial investigator Jessie Dean and members of the Massachusetts State Police assigned to the Attorney General's Office. The Essex County District Attorney's Office and the Groveland Police Department also assisted with the investigation. Beverly Hospital cooperated fully with the investigation.

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