Former Associate Vice President of Beverly Hospital Pleads Guilty, Sentenced in Connection with Stealing Antiques and Using Hospital Contractors for Personal Work
Defendant Used Hospital Contractors to Pay More than $360,000 Worth of Personal Bills and Work at His Home
SALEM – A former Associate Vice President for Beverly Hospital pleaded guilty and was sentenced in connection with using contractors involved in the hospital’s renovation to pay his personal bills and to perform repairs at his home, Attorney General Martha Coakley announced today. He was also pleaded guilty in connection with stealing several valuable antique items from the hospital.
Paul Galzerano, age 60 of Groveland, pleaded guilty Monday in Essex Superior Court to charges of Commercial Bribery (2 counts) and Larceny over $250 (4 counts). After accepting Galzerano’s guilty plea, Essex Superior Court Judge Howard Whitehead sentenced Galzerano to serve two years in the House of Correction, with 18 months to serve, and the balance suspended with probation for two years. As conditions of his probation, Judge Whitehead ordered that Galzerano complete 20 hours of community service each week during the two-year probationary period, and that he stay away from Beverly Hospital and its employees.
Judge Whitehead stayed execution of the sentence until May 30, 2012, with the same stay-away order as a condition of the stay. Galzerano is to report to court on that date to begin serving his sentence.
“This defendant abused his position of trust at the hospital for his own benefit,” AG Coakley said. “He not only stole thousands of dollars’ worth of valuable antiques, he also used hospital contractors to pay for hundreds of thousands of dollars in personal bills and repairs to his home.”
In December 2008, the Attorney General’s Office began investigating Galzerano’s activities after the matter had been referred by the hospital.
Three contractors were also charged in connection with helping Galzerano with his scheme. In 2010, Brian Lemay, age 55, of Andover, John Kane, age 53, of Hanover, and Alfred Cunsolo, age 53, of Methuen, were arraigned on charges related to the scheme. In January 2011, Lemay pleaded guilty to charges of Commercial Bribery and Larceny over $250. Lemay was sentenced to two years in the House Correction, six months to serve, with the balance suspended for a probationary period of three years. Lemay was also ordered to pay restitution in the amount of $216,841.21. In May 2011, Kane pleaded guilty to the charge of Commercial Bribery and was sentenced to serve five years of probation, the first six months under house arrest. Cunsolo pleaded guilty in February 2011, and his case was continued without a finding for 18 months, with the conditions that he pay full restitution in the amount of $9,747.94, pay $1,000 court costs, and refrain from public bidding while on probation.
COMMERCIAL BRIBERY AND LARCENY CHARGES
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 more than $360,000 from contractors working on the renovation. The kickbacks to Galzerano ensured that the contractors would continue to receive lucrative contracts to do renovation work on the hospital. Lemay owned a large company that specialized in HVAC services for hospital construction projects. 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 more than $260,000 in payments to Galzerano’s personal credit card bills, mortgage payments, and other bills. An electrical contractor paid more than $95,000 worth of Galzerano’s personal bills, including mortgage, credit card, and vacation bills, while performing renovations at the hospital. Both contractors also performed free work at Galzerano’s home. In addition, investigators discovered that Galzerano hired Cunsolo, who owned a small general contracting company that did some renovation work for the hospital, to perform driveway work at his house. Galzerano then allowed Cunsolo to bill the hospital approximately $10,000 for the driveway work, and Galzerano approved the invoice for payment by the hospital.
In the course of the hospital’s renovations, Galzerano arranged for antiques and paintings that had been previously donated to the hospital to be moved to storage. Investigators discovered that during the hospital’s renovation, Galzerano moved a century-old grandfather clock and two valuable paintings to his home. When the hospital’s renovation was complete, the items were missing and never returned to the hospital. Investigators also discovered another instance in February 2006, where Galzerano purchased several antiques at a local store claiming to the store owner and hospital employees that the items were purchased for the hospital. Galzerano had the store bill the hospital for these purchases, and in order to pay for these items, Galzerano asked one of the hospital’s vendors to pay the store. These items never arrived at the hospital when the renovation was completed. In 2008, hospital employees saw pictures of some of these missing items in a newspaper’s online real estate listing for Galzerano’s home, which was featured as “Home of the Week.” A search warrant was executed at his house and the Groveland police recovered several of the missing items belonging to the hospital. The total value of the stolen antiques and paintings is approximately $25,000.
An Essex County Grand Jury returned sealed indictments against Galzerano on March 26, 2010, in connection with the antique thefts. Those indictments were unsealed on July 1, 2010, following the additional indictments returned by the Grand Jury against Galzerano, Lemay, Kane and Cunsolo for the commercial bribery scheme. Galzerano was arraigned in Essex Superior Court on July 22, 2010. Galzerano pleaded guilty in Essex Superior Court on Monday. Judge Howard Whitehead stayed the execution of the sentence until May 30, 2012. Galzerano is due back in court on that date to begin serving his sentence.
The case was prosecuted by Assistant Attorneys General Andrew Doherty and Margaret Parks, both of AG Coakley’s Fraud and Financial Crimes Division, and was investigated by Financial Investigator Mark Pulli 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.