NIFA asks NY attorney general for criminal investigation into fired NUMC CEO Megan Ryan, sources say

The watchdog group that oversees Nassau University Medical Center's finances has asked State Attorney General Letitia James to investigate for possible criminal charges against former hospital CEO Megan Ryan, four sources told Newsday.

The move comes after NUMC filed a lawsuit against Ryan on Wednesday, claiming she authorized more than $1 million in wrongful payouts, ordered the destruction of 40 containers worth of documents and reimbursed herself for a "phantom" trip to Chicago.

NUMC’s board also agreed to alert state and federal prosecutors about allegations outlined in the lawsuit, sources, who were granted anonymity to discuss the requests, told Newsday.

"No one should be surprised that a bunch of Democrats who are actively campaigning to defeat incumbent Nassau Republicans this November would weaponize the system for their political gain, and to cover up their own corruption," Tom Basile, a spokesman for Ryan, wrote in a statement to Newsday.

Democrats have pounced on the allegations against Ryan. 

"If you shredded 40 containers of documents ... you’re not protecting the public. You’re hiding from them," Nassau Legis. Delia DeRiggi-Whitton (D-Glen Cove) said at a news conference Thursday. DeRiggi-Whitton and other Democrats repeated their call to the Nassau's District Attorney, plus state and federal law enforcement, to launch a criminal investigation, adding Ryan should be investigated for "tampering with evidence." 

A spokeswoman for the Nassau District Attorney's Office previously told Newsday it has already launched a probe into NUMC management. 

NUMC is seeking $10 million in punitive damages against Ryan and alleges she orchestrated a mass resignation of 13 executives and approved hefty payouts in violation of hospital policy. She paid herself more than $237,000 in excess of what was allowed, the suit claims. Ryan also reimbursed herself $7,800 for a trip to Chicago for a conference after canceling the trip, the suit reads.

Nassau Interim Finance Authority filed a criminal referral to the state attorney general’s office on Thursday, according to a source with knowledge of the matter. The group is calling on the state’s top prosecutor to investigate claims Ryan approved more than $1 million in improper payouts to her peers, including the hospital’s chief financial officer, chief medical officer and director of pharmacy.

NUMC also flagged its lawsuit against Ryan to the state inspector general, the U.S. Attorney's Office for the Eastern District of New York and Attorney General James, sources said.

A spokesperson for the state inspector general’s office wrote in a statement that it does not announce or confirm investigations "unless and until a finding of wrongdoing is made."

Spokespeople for NUMC, NIFA and the U.S. Attorney's Office for the Eastern District declined to comment. A spokesperson for the state attorney general did not respond to an inquiry.

NUMC's board also voted Wednesday to drop a $1 billion lawsuit against New York State filed by the hospital under Ryan's tenure last year. Ryan alleged state health officials withheld funding NUMC was entitled to for treating low-income and uninsured patients. The board also dropped a lawsuit against NIFA filed under Ryan.

"The Democrat board and legislators are engaged in a willful cover up of the diversion of federal funds, stealing from our safety net hospital," Nassau County Executive Bruce Blakeman wrote in a statement. "The same Democrat legislators and board should be fighting for that money for their constituents."

Gov. Kathy Hochul took control of NUMC’s board in the spring following a longtime power struggle to control the hospital between state Democrats and local Republicans. The hospital’s 11-person board currently consists of seven members appointed by state Democrats. Local Republicans have refused to appoint their four board seats.