Evidence at BHC civil trial bolsters claims that Steins knew and approved of rental deal by Carolyn James

In what was one of the rare dramatic moments in an otherwise long and laborious civil trial, Dr. Anwar Jit Singh stepped down from the witness stand on Monday, walked slowly to the plaintiff’s table and retrieved a large manila folder containing copies of canceled checks. The checks proved, according to his attorney John Gionis of East Meadow, that allegations against the doctor that he stole money from Brunswick Hospital Center, and tried to cover up the thefts, were indubitably false.

At issue are $122,000 in rent checks to the hospital from Hope For Youth, a local non-profit organization, and hospital nurses, that were deposited, without endorsement, into an account for Brunswick Medical Services PC, Dr. Singh’s firm.

Under oath, Singh told the jury that the checks represented reimbursement for $155,000 he laid out to refurbish a building on the Brunswick property known as the nurses quarters. As the hospital was undergoing the process of renegotiating its mortgage, it needed to establish a stronger revenue stream, said Singh. After walking through the building, he realized it could be refurbished and leased out, bolstering the hospital’s income levels.

"I went to Dr. Benjamin Stein and told him about it but he said there was no money to refurbish the building," said Singh. "I offered that I would invest the money as long as I make sure that once the hospital has money or the building starts to generate income that I will be paid back."

Singh did make the repairs and eventually rented the space to Hope for Youth, as well as to offer nurses living space in the building. That made it easier for the hospital to maintain nursing coverage during the night, which up to that point had been a problem, said Singh.

"I knew that if we had nurses living on campus, it would not only help us bring in nurses at night if we needed them but also make up some of the differential in salary between what we paid and what was paid at other local hospitals," said Singh.

The scenario was played out Monday afternoon before Supreme Court Justice Peter Fox Cohalan in Riverhead. The case was brought by Dr. Singh and Harry Fruhman, the CFO and CEO of Brunswick Hospital Center, against Benjamin and Claire Stein, the hospital’s founders, and their son Dr. Douglas Stein. The Steins had entered into a series of agreements in 1999 with Singh and Fruhman to sell the hospital, and between that time and September, 2001, Singh and Fruhman managed the health-care facility.

On September 24, 2001, however, the Steins fired the two men, claiming that Singh had stolen money from the hospital, and that the two had failed to show that they had the financial backing needed to complete the purchase.

Subsequently, Singh and Fruhman sued the Steins for breach of contract, and also named a third defendant, Ted Doukas. Singh and Fruhman charged that Doukas, who they engaged to help the hospital renegotiate a $13 million outstanding mortgage on the hospital’s property with European American Bank, and a settlement on outstanding taxes, with undercutting their position with the Steins, which ultimately led to the September 24, 2001 firing.

Fruhman, who handled the hospital’s finances, had testified last week that he was unaware that the checks were coming in after the building was leased. After being pressed by the Steins’ attorney, Jerry Gargiulo of St. James, Fruhman acknowledged that the accounting procedure used to repay Singh was "unusual."

But Singh said this week that Dr. Benjamin Stein, and members of the hospital’s executive board had been made fully aware of the deal several times, and that while the accounting may have been "a mistake," the renovations were not since they have, and will help strengthen the hospital’s finances.

Presented into evidence under the objections of Doukas’ attorney James J. O’Rourke of Hauppauge, was a signed agreement dated February, 2001 between Doukas and Singh, authorizing Doukas to manage the refurbished buildings, review all leases and deposit rent checks into Singh’s account, less ten percent for Doukas’ services.

Also presented into evidence was a memorandum distributed to nurses who rented living space in the building advising them to make the checks out to Dr. Singh’s company, and copies of those canceled checks that Singh had faxed to Doukas September 4, 2001.

"He [Doukas] told me that the bank that was considering the refinancing had told him that there wasn't enough money in the hospital to pay the mortgage," said Singh. "My response was that we have created another [source of] income of $800,000 a year with these buildings and that if we show this, it will get us some money to refinance. He [Doukas] told me to fax him the checks and I did."

The evidence refutes the defendants’ claims that they did not know about the agreement made to refurbish the building or the rental income, a point driven home by Gionis.

"Would you offer to send Ted Doukas the checks if, as they (the defendants) allege you had stolen them?" asked Gionis over O’Rourke’s objections.

"I have never stolen anything in my life," said Singh.

Dr. Douglas Stein, who has sat in the courtroom with his mother and Doukas throughout the case, kept passing notes to his attorney during the direct examination of Singh. Asked by a reporter what he hoped the outcome of the case would bring, he said he was primarily concerned about the future of the hospital.

"It is important to me; it is my family's and it is important to the community, and I want to see it continue."

At press time, all sides were coming together again in an effort to reach a negotiated settlement. In the event no settlement is reached, the attorney's for the Steins and Doukas will have an opportunity to cross examine Singh this week before the case goes to the jury for deliberations.