New York State Assistant Attorney General Roseanne Fiore announced today the indictment of Dr. Barrett Katz, chief executive officer, of Gramatan University Hospital, the world-renowned medical complex in midtown Manhattan. Dr. Katz, who has taken a leave of absence, is accused of committing Medicaid fraud by falsifying hospital reimbursement records for guardians of handicapped or otherwise challenged patients.

Ms. Fiore said, “Dr. Katz’s behavior and methodology were illegal in fact and shocking in scope.” Dr. Katz established bogus deposit accounts for patients, usually senior citizens, with significant dementia challenges. Their guardians were promised special “extra care” treatment for their charges when they agreed that certain Medicare payments be sent to Dr. Katz’s private bank accounts, many of which were set up in Caribbean countries and two cities in southern France, Marseilles and Nice.

Bail was set at two million dollars for Dr. Katz, and he was released on his own recognizance. No trial date has been set.

In Dr. Katz’s absence, Dr. Rudra Sarkar, GUH chair of obstetrics and gynecology, will assume the role of CEO. In a statement released by the hospital, Dr. Sarkar said, “We are astonished by these accusations, and we fully stand by Dr. Katz at this time.”

Dr. Katz was not available for comment. He is said to be at his summer estate in Peconic, Long Island.

I look at Blumenthal, who shrugs and opens both his eyes in a What can I tell you? expression.

“How long has this been going on?” I ask.

“About three years,” he says.

Then Bobby jumps in: “But the investigation from the AG’s office has only been going for ten months. Even so, the evidence is there.”

“And how long have you personally, privately, secretly known about this?” I ask Blumenthal.

“Exactly four days,” he says. Anticipating my anger, he adds, “And that’s the absolute truth. This Katz guy is best buds with half the big shots in New York, and those big shots include the mayor and the commissioner, plus some of Gramatan’s biggest and most important donors.”

“I believe you,” I say. I do believe Blumenthal, but what pisses me off is that Sarkar never mentioned any of this to me, not even when I saw Katz leave the hospital with what I now realize was a police escort. I should have insisted that Sarkar tell me what was happening. But—a big but—he should have offered up the info without my asking.

I nod my head slowly, and with an appropriately small smile, I say to Blumenthal, “Maybe NYPD should have set up a whole special unit just to deal with crime at Gramatan University Hospital.”

“Could be a job in it for you,” Blumenthal says with an equally small smile.

Before I can invent a wiseass response, my cell phone begins ringing. It’s Troy.

“What’s up?”

“I’m back at the hospital,” he says. “I thought you’d want to know.”