A former hospital executive has been sentenced to one to three years in prison for embezzling $1.44 million from SUNY Downstate Medical Center in New York, according to the Brooklyn District Attorney's Office.
Dr. Michael Lucchesi, 67, of Staten Island, the hospital's former chief medical officer and chairman of Emergency Medicine, pleaded guilty in July to grand larceny, using a business credit card for personal purchases and cash advances.
Lucchesi also agreed to make restitution in the amount of $720,000, which included restitution of $63,926 to the New York State Department of Taxation and Finance on the day of the guilty plea and restitution of $656,074 to Downstate Hospital's clinical practice on Wednesday.
"SUNY Downstate does vital, lifesaving work, and these stolen funds could have been used to support patient care and medical services," said Brooklyn District Attorney Eric Gonzalez. "Instead, they were diverted for personal expenses over a period of years."
WHAT'S THE IMPACT
According to Gonzalez, Lucchesi made personal purchases using a credit card meant to be used only for business purposes by members of the clinical practice University Physicians of Brooklyn, of SUNY Downstate.
The investigation found the defendant's spending totaled approximately $1.44 million and included cash advances of approximately $115,000; pet care totaling $176,000 (including $120,000 paid to The Greenleaf Pet Resort and Hotel in New Jersey); $348,000 spent on personal travel; $109,000 in payments to the New York Sports Club for membership and personal training; $92,000 for premium seating for sporting events, concerts and Broadway shows; $52,000 in catering expenses; $46,000 in tuition payments for his children; and assorted payments for online shopping, flowers, liquor, electronics and other items.
The thefts were discovered by SUNY during an audit.
New York State Inspector General Lucy Lang was also involved in prosecuting the case.
"Our state-funded hospitals rely on every dollar to provide care to their patients, and it shocks the conscience that a doctor entrusted with caring for our state's most vulnerable communities would steal them to bankroll his luxury lifestyle," said Lang. "This case should serve as a stark warning to any public servant who would consider abusing their position of trust for personal gain."
THE LARGER TREND
SUNY Chancellor John B. King Jr. said the medical center took immediate action and now has tighter controls in place.
"We greatly appreciate the partnership of the District Attorney and Inspector General, in particular, in bringing this matter to a close," said King. "With more stringent internal controls and comprehensive oversight systems in place, SUNY Downstate is now in a stronger position."
Email: jlagasse@himss.org
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