Complicated Hospital Board Indictment Issued

By vouchey in News on May 10, 2005 5:41PM

After a long-brewing federal investigation, three North Shore businessmen were convicted yesterday for forcing hospitals to provide them millions of dollars of kickbacks so they could build new facilities, and billing other medical facilities millions of dollars of fraudulent charges. Stuart Levine, a former member of the Illinois Hospital Facilities Planning Board (IHFPB) allegedly channelled business to contractor Jacob Kiferbaum and Bears Stearns investor Nicholas Hurtgen. After Kiferbaum and Hurtgen got the business, Levine would allegedly receive a kickback, and ensure the hospitals' plans would be approved on the IHFPB. (Indictment text here.)

In total, they are accused of scamming over $9.5 million from Edward Hospital in Will County Mercy Hospital in McHenry County, and Chicago Medical School in North Chicago.

Levine, a top Republican fundraiser, has close ties to indicted former Republican Governor George Ryan, and was recommended for his spot on the IHFPB by Tony Rezko, a top fundraiser for current Democrat Governor Rod Blagojevich, who is also under investigation. Hurtgen's wife, Catherine, has donated $42,000 to Blagojevich in cash and free transportation.

"Stay tuned; there will be more charges in the future," says FBI Special Agent in Charge Robert Grant.