Corporate Compliance

Former NJ State Senator sentenced for defrauding hospital

Compliance Monitor, September 9, 2009

Former New Jersey State Senator, Joseph Coniglio, will serve 30 months in federal prison for an alleged extortion and mail fraud influenced-peddling scheme that paid him $66,000 a year through a concealed arrangement with Hackensack University Medical Center (HUMC), according to a Department of Justice (DOJ) release.

 

On April 17 a jury convicted Coniglio, 66, of five counts of defrauding the public by use of the mail and one count of extortion. He was acquitted of two mail fraud counts and the jury was unable to reach a verdict on another.

 

According to the DOJ, Coniglio’s consulting arrangement with HUMC granted him $5,000 a month (he received a $500 raise later) to perform hospital relations – a field he had no experience in. He collected over $100,000 during his corrupt arrangement with HUMC. Coniglio deceived the hospital by signing a contract under false pretense – he claimed he was working with VJC Consulting, LLC to perform hospital relations. Receiving salary from HUMC directly through VJC let Coniglio disguise his real source of income on public annual financial disclosure statements, in which he reported solely to VJC. HUMC was left in the dark.

 

During his arrangement, Coniglio rallied the Senate to increase funding for HUMC; a tactic that granted HUMC millions of dollars from the state.

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