A widening probe into bribery and corruption in the approval, financing and construction of hospitals and medical schools expanded when Chicago U.S. Attorney Patrick Fitzgerald indicted John Glennon on criminal conspiracy charges. Glennon, 53, is charged with three counts of aiding and abetting related to concealing more than $700,000 in kickbacks paid to Stuart Levine, the former vice chairman of the Illinois Health Facilities Planning Board.
According to the indictment, the kickbacks allegedly were paid to Levine by Chicago-area construction company president Jacob Kiferbaum, to win a contract to build a medical school wing. Kiferbaum pleaded guilty in June to attempted extortion. Levine is charged with extortion and seeking kickbacks from Kiferbaum and P. Nicholas Hurtgen, former Midwest director of the investment bank Bear, Stearns & Co., who also was indicted in the case, to win certificate-of-need approval to build hospitals.
Glennon allegedly helped disguise the kickback payments as marketing fees that Kiferbaum paid to Glennon's consulting firm, North American Capital Opportunities, according to the indictment, which does not say whether Glennon personally profited from the alleged arrangement. Glennon did not return phone calls to his Lake Forest, Ill. home. Prosecutors are seeking the repayment of the $700,000 and may try to seize Glennon's home.