The Each day Beast
This Fertilizer King Funneled Cuomo $1 Million—and Got a Glossy York Properly being-Care Empire
Whisper Illustration by The Each day Beast/Photos GettyHe’s an global man of mystery—a reclusive billionaire who once offered a decrease Ny skyscraper in cash. He’s cut back multimillion-greenback industry presents with now-sanctioned figures in Russian autocrat Vladimir Putin’s circle. And, thanks in phase to Gov. Andrew Cuomo and his administration, he used to be left responsible of the health and nicely-being of thousands of heart-broken and aged Glossy Yorkers in all places in the COVID-19 pandemic.Same old assessments peg Alexander Rovt’s total donations to Cuomo, and to the Glossy York Stammer Democratic Social gathering organization the governor controls, at around $320,000. Nonetheless The Each day Beast sure that the explicit opt, including the contributions from Rovt’s rather a lot of company entities and his tight-knit clan of industry associates and members of the family, is more than thrice that quantity: over $1 million, making him one in every of the governor’s wonderful and most constant contributors.At the unique time, with abet from the governor, who has shut to total adjust over Glossy York’s closely backed health-care industry, Rovt sits atop an empire of non-public hospitals and for-earnings nursing properties and residential health businesses.Cuomo’s camp insists the Ukrainian-born Rovt’s donations had nothing to develop with his upward thrust in Glossy York’s tightly regulated health-care market. “Political donations have zero pertaining to policy,” asserted spokesman Jack Sterne.Nonetheless in 2020 a decade of choices collided with COVID-19. Cuomo’s mishandling of the pandemic’s early surge has attracted rising criticism and scrutiny in unique months, and the colossal enviornment Rovt constructed with his impart contracts, grants, and approvals were the scene of a couple of of the outbreak’s worst carnage.Files on fatalities throughout the first and worst wave of the pandemic is notoriously unreliable, especially in Glossy York. Nonetheless in March of final year, Brookdale Clinical institution—the place Rovt has presided as chairman for more than eight years—turned a nationally televised poster baby for health system failure, with photos of choked hallways and duct-taped plastic sheeting in its wards.Dr. Oriana Ramirez, who executed her residency final summer at Brookdale in impoverished Brownsville, Brooklyn, when in contrast the must haves on the scientific center to americans who compelled her to leave her native Venezuela.“After I speak you it used to be rotten, I speak you there were sufferers on the floor in the [emergency department],” she acknowledged, noting the gulf between Rovt’s wealth and the care Brookdale supplied. “I noticed that every the time throughout residency the disparities between what the sizable bosses are to what we offered in the scientific institution.”Ramirez described to The Each day Beast how continual understaffing left her and her peers working 16 hours at a time with out a loo break and 24 hours without going home. The residents at a scientific institution helmed by a billionaire who offered Ny accurate estate in cash needed to crowdfund no longer handiest non-public protective equipment, as workers at a couple of alternative Glossy York facilities did, but even fashioned scientific affords bask in IV bags and shatter carts. By that Can also simply, 70 p.c of emergency treatment residents at Brookdale had examined sure for the virus. By distinction, a word at every other laborious-hit Brooklyn scientific institution in June stumbled on COVID-19 antibodies in handiest a diminutive more than a third of its residents working in the emergency room.Ramirez helped deal with the patient who turned the face of the roar at Brookdale.When 30-year-used teacher Rana Zoe Mungin started displaying COVID-19 symptoms in mid-March, she went to Brookdale twice, handiest to be treated for asthma and return home with out a test for the coronavirus.When she went reduction the third time, it used to be in an ambulance her sister Mia Mungin had summoned. Mia acknowledged Rana needed to wait a corpulent day, a lot of it on a ramp, before getting admitted into the intensive care unit. In text messages, Mia acknowledged her sister described the scientific institution as “a circus” and “a battle zone.” After Mia waited hours to uncover word on her sister’s impart, a health care provider suggested her Rana used to be beautiful.The following morning, Mia Mungin purchased very varied files: Her sister had examined sure for COVID-19—and she used to be the “sickest particular person in the scientific institution.” Mia Mungin acknowledged she used to be unable to gaze her sister and handiest received sporadic updates from the scientific institution.“They in overall suggested me she used to be dying and there used to be nothing that we may possibly well perhaps also develop,” Mungin suggested The Each day Beast. “I knew I wished her out of Brookdale attributable to she used to be moral no longer getting nicely.”A switch to the prestigious Mount Sinai scientific institution in Ny used to be finally permitted. Nonetheless Brookdale wouldn’t let Rana recede, her sister acknowledged. In maintaining with Mia Mungin, the Brooklyn scientific institution explained that it kept her attributable to she used to be responding positively to medicines for the pneumonia she had without note developed.Rana finally made it to Mount Sinai but died less than a month later from complications linked to the virus.“I in actuality felt bask in they [Brookdale] were leaving her to die,” Mungin acknowledged.Dr. Ramirez asserted that Mungin family’s tragedy used to be removed from uncommon and blamed the scientific institution for no longer taking steps to be sure that it had ample workers.“She is lovely that the system didn’t work,” she acknowledged. “The system doesn’t work even without COVID.”Brookdale didn’t acknowledge to repeated requests for statement.Fifty miles to the east, at Brookside Multicare Nursing Middle on Long Island, the 353-mattress pendant jewel in the Rovt’s chain of senior properties, workers The Each day Beast spoke with described an atmosphere bordering on the nightmarish. Staff starting from kitchen workers to nursing complained of years of inadequate staffing and rushed work, an field the pandemic handiest exacerbated when dozens of workers and sufferers fell sick.One licensed impartial correct nurse, Keisha Wallace, outlined how in the early days of the pandemic she labored with contaminated and uninfected sufferers in the identical unit and on the identical shift. No longer handiest have she and her colleagues needed to possess their very have PPE, in addition they needed to substitute their stethoscopes and blood rigidity machines out of pocket. The affords the home affords, corresponding to gloves and cleaning affords, had been of consistently low quality.“I took a washcloth the opposite day, and it used to be bask in a tissue you uncover out of a tissue field,” she acknowledged.A union store steward, Wallace acknowledged she gets complaints day-to-day from co-workers who examined sure for COVID-19 and needed to quarantine but didn’t receive the pay for that length the laws entitles them to. Darryl Jackson, a Brookside cook dinner, described administration pulling workers “beautiful off the line” in the center of shifts attributable to their test results came reduction sure. These workers had no possibility to head home sick to their households and needed to wait months for his or her compensation.“It tore through my division,” acknowledged Jackson. “Loads of my colleagues felt victimized.”Brookside insisted that it has complied with all health-care guidelines, supplied ample equipment to all its workers, and has now paid all outstanding compensation owed to americans that turned contaminated. It also eminent that it has a four-critical particular person total score from Medicare.gov, though its health score is moral three stars, and that appears to be like to be in maintaining with an inspection from January 2020, before the first documented case of COVID-19 in Glossy York.COVID Deaths in NY Nursing Homes Undercounted by As a lot as 50 P.c: AGIt’s no longer seemingly Brookside or Brookdale, or any health care entity Rovt is expounded to, will face valuable appropriate prices linked to their handling of the pandemic. At the urging of the industry, Cuomo turned one in every of the first governors in the nation to defend both nursing properties and hospitals from liability linked to COVID-19 care. This sizable-based completely security extends to any “administrator, govt, supervisor, board member, trustee, or other particular person to blame for steering, supervising or managing a healthcare facility.” In a file on the extent of COVID-19’s destruction in nursing home facilities released in January, the impart licensed skilled fashioned warned that these provisions may possibly well perhaps also grant “blanket immunity for causing hurt to residents.”The explicit language reflected Cuomo’s closeness to the scientific sector, one in every of the wonderful employers in the impart. Institutions serving the heart-broken and aged are closely dependent on Glossy York’s largest-in-the nation Medicaid program, which the governor controls.Nonetheless there are few figures in the health-care field—or in any field—rather bask in Rovt.Rovt, a registered Republican, started to plan fashioned ardour in the American media in early 2017, when it emerged that he had attempted to raise a hugely over-the-limit contribution to then-President Trump on Election Day. He periodically resurfaced in the ensuing years for allegedly having helped hatch a pro-Kremlin Crimean “peace conception” peddled by then-presidential fixer Michael Cohen, for having doable ties to a secret $3.5 million mortgage extended to convicted ex-Trump campaign chairman Paul Manafort, and for supplying a jet for ex-Glossy York Metropolis Mayor Rudy Giuliani’s escapades in Eastern Europe. In every incident, Rovt denied having any say files or involvement.Despite his riches and clout, Rovt had spent decades maintaining off serious scrutiny. His pre-Trump cameos in the U.S. press in overall resulted from his dabblings in accurate estate. Eyes bugged in 2012 when he offered a constructing all over from the Glossy York Inventory Exchange for $303 million in an unheard-of all-cash transaction. It used to be one in every of a lot of extremely outlandish debt-free accurate estate purchases in Glossy York by Rovt, who simply explained that he “hated mortgages.”Nonetheless few looked as if it may possibly probably possibly well perhaps be asking the place the money for the possess had come from. Finally, in 2010, Rovt had taken out a $4.5 million mortgage to possess the 58th Avenue headquarters of his fertilizer firm, IBE Exchange Corp.In an email to The Each day Beast, IBE Chairman Steven Plotnick acknowledged that foreign asset sales had supplied on the very least a couple of of the funds for Rovt’s accurate estate investments. And when it came to foreign asset sales, Rovt had a bumper 2011.That February, Rovt sold the sprawling Severodonetsk Azot chemical works—which he had moral purchased adjust of thanks to a cut price basement sale by the Ukrainian govt—to energy magnate Dmytro Firtash. Firtash used to be a key backer of since-deposed Ukrainian President Viktor Yanukovych, and experiences would therefore identify him as one in every of the major monetary links between Yanukovych’s regime and Putin’s.No longer prolonged in a while, Rovt and his companion, a Russian senator and archaic Soviet fertilizer czar, sold their stake in a varied plant for $1 billion to oligarch Arkady Rotenberg, Putin’s childhood friend and judo sparring companion.Rovt dilapidated the cash to finance his accurate estate purchases and to provide a fresh industry kingdom for himself in The US, one founded no longer on petrochemical plant food but on americans’s lives. And he had the abet of a fresh ally: Andrew Cuomo.Rovt’s entry into the health-care field used to be hardly auspicious. In 2001, he joined the board of financially strapped and impart-dependent Brookdale Clinical institution. By 2007, he had change into the institution’s vice chairman and imported Plotnick onto the board with him. IBE Exchange Corp’s in-home counsel, Irina Benfeld, joined in 2010.Then scandal struck. That very same year, Brookdale’s CEO used to be ensnared in impart and federal probes that uncovered a bribery and kickback plot difficult three impart lawmakers and scientific institution dollars. Rovt used to be by no manner accused of wrongdoing, but he had prolonged cultivated a relationship with one in every of the implicated legislators. All four of the accused were convicted and imprisoned for his or her crimes.The Stammer Division of Properly being urged the impart licensed skilled fashioned’s office to probe Brookdale’s board. Nonetheless the impart licensed skilled fashioned in the meantime used to be Cuomo, and he used to be running for governor with Rovt’s monetary backing.The $65,200 Cuomo purchased that first campaign from Rovt and his wife used to be moral the delivery. Over the next decade, the couple and their son would dump practically $430,000 more into the governor’s coffers. The family and IBE poured every other $256,000 into these of the impart Democratic Social gathering, which Cuomo controls and makes exhaust of to quilt his political prices and prop up his allies. Every other $235,800 would near through the entities the family makes exhaust of to just its accurate estate portfolio, while a industry affiliate who manages the properties kicked in every other $10,000.Quickly after coming into office in 2011, Cuomo commissioned a community of public health consultants to have a look on the roar of Brooklyn’s struggling hospitals. The panel’s findings on Brookdale were scathing: It used to be the most closely leveraged scientific center in the borough and the least fashionable among sufferers. As a resolution, it instructed the more financially genuine Kingsbrook Jewish Clinical institution “grab the lead in establishing an integrated system with Brookdale,” and with “a fresh governance constructing and a fresh board of directors.” Despite impending “monetary give arrangement” at Rovt’s scientific institution, it warned that a “impart bail-out of the potential in its unique configuration, below unique management, is neither seemingly, nor rational.”As a change of following these solutions, over the next 5 years Cuomo-managed businesses pumped around $100 million in grants into Brookdale—even as honest auditors awarded it year after year of failing security grades and consistently ranked it among the worst hospitals in The US. The scientific institution confronted more than 100 patient complaints in 2012, the identical year Rovt turned Brookdale’s chairman and joined the board of Maimonides Clinical Middle, a more affluent institution a lot of miles away.Cuomo’s Division of Properly being agreed to withdraw its request for an investigation of Brookdale’s board if the potential dropped the administration firm with which its convicted CEO had been associated. In 2016, Cuomo organized for a fresh word on Brooklyn’s hospitals, this one authored by a archaic aide to his father, the tiring Gov. Mario Cuomo.Its recommendation: Brookdale and every other laborious-up scientific institution, Interfaith Clinical Middle, must grab up Kingsbrook’s inpatient care and surgical products and services, and a fresh working entity must grab over the administration of all three facilities.That fresh entity, based completely at Brookdale Clinical institution, came into existence moral a couple of months later. The organizing documents for One Brooklyn Properly being Intention bore the signature of its fresh chairman: Alexander Rovt. And it soon formed the core of the $1.4 billion A will deserve to have Brooklyn initiative Cuomo announced in early 2017.Cuomo’s team insisted that it may possibly probably possibly well perhaps also no longer implement the 2011 conception’s solutions for a Kingsbrook-led unification attributable to the funding for the merger didn’t exist till the governor place it in his budget in 2017.“The A will deserve to have Brooklyn initiative is ready one roar: maintaining Glossy Yorkers healthy, and that’s precisely what it is doing,” acknowledged Sterne, the Cuomo spokesman.Nonetheless the timing of this appropriation used to be completely on the discretion of the governor, who sets the budget in Glossy York and controls the relevant impart bonding authorities. Extra, Cuomo’s office maintained it used to be One Brooklyn’s board of directors that picked Rovt as the chair—though public files display cloak Rovt already held the position on the time of One Brooklyn’s incorporation and the filing of its bylaws.It’s advanced to search out out to what extent Rovt has profited accurate a long way off from his positions at Brookdale and One Brooklyn Properly being, which are officially unpaid. Brookdale’s 2011 monetary disclosure acknowledged that Rovt had a “industry relationship” with the scientific center. Nonetheless it in truth supplied no essential points on the vogue of sums involved, and no subsequent filing has talked about it since. Rovt had previously offered to lend the scientific institution money in alternate for holding its accurate estate as collateral, however the 2011 documents display cloak no outstanding loans from board participants.Brookdale changed accountants after Rovt turned chairman the next year, and Plotnick acknowledged no one at IBE remembers what this industry relationship used to be.Nonetheless Rovt has clearly dilapidated his affiliations with the Brooklyn hospitals to begin his for-earnings health care ventures. Working with every other Ukrainian-born industry companion, Rovt has spent the previous decade today rising a network of home health businesses, with the abet of approvals and $160 million in contracts from Cuomo’s impart Division of Properly being—and with referrals from Brookdale, Kingsbrook, and Maimonides.The scientific files firm Dexur supplied The Each day Beast with the three most price years of Medicare and Medicaid figures from Rovt-linked institutions. In that brief span, the numbers display cloak more than $1 million in industry has flowed to Prime Home Properly being Products and services from these three hospitals.On his 2016 utility to the impart to grab over a series of nursing properties in Queens and the Glossy York Metropolis suburbs, Rovt cited his historical previous with Brookdale, Maimonides, and Prime as proof of his journey and qualifications. Cuomo’s appointees permitted the conception, which Rovt’s have estimates acknowledged would yield $4.78 million in earnings in moral the first year.The explicit numbers would be a lot elevated. Advocates have prolonged complained that taxpayer dollars recede into subcontracted firms belonging to nursing home owners. Treasure many house owners, Rovt splits his nursing properties’ operations and their bodily facilities between two company entities, with the archaic paying rent to the latter, even though he holds a 90 p.c stake in both. Plotnick acknowledged to The Each day Beast that the Prime network of home health businesses have a identical procedure, paying for the exhaust of their Rovt-owned Brooklyn headquarters. The shortcoming of transparency makes it very no longer seemingly to gaze whether the properties, or the Prime firms, have accomplished industry with any other Rovt-managed firms. Plotnick acknowledged he didn’t notify the properties or the businesses had made any payments as adverse to rent to firms belonging to the billionaire.Extra than 13,000 Glossy Yorkers have died in nursing properties throughout the pandemic—a recurring supply of scandal for Cuomo, who initially place ordered the facilities to grab reduction COVID-19 sufferers released from hospitals. In unique weeks, it has emerged his administration intentionally undercounted the choice of residents who therefore died.Plotnick claimed no longer to label a request from The Each day Beast that highlighted the honour between Rovt’s wealth and the heart-broken prerequisites and lack of fashioned affords reported on the scientific institutions he controls. Asked to verbalize Rovt’s relationship with Cuomo, his acknowledge used to be brusque.“Alex Rovt is a tireless recommend for the Brooklyn health care system and Governor Cuomo is the chief govt of Glossy York Stammer,” Plotnick wrote. “That is their relationship.”Be taught more at The Each day Beast.Got a tip? Ship it to The Each day Beast hereGet our high experiences on your inbox on day-after-day basis. Model up now!Each day Beast Membership: Beast Inner goes deeper on the experiences that matter to you. Be taught more.
