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2 at MedSys embroiled in human smuggling
Friday, January 12, 2007

By HUGH R. MORLEY
STAFF WRITER


The chief executive officer of a Hasbrouck Heights medical equipment supplier and a major company shareholder have been charged with laundering money in connection with illegal alien smuggling.

MedSys CEO Anthony R. Rubino received $25,000 from the smuggler, placed it in a company account and then wired $22,500 to the smuggler's account, according to a complaint filed by the U.S. Attorney's office in Newark.

In return, Rubino, of Pompton Plains, received 7 percent of the money, or $1,750, the complaint, dated Jan. 5, said. It also alleged that Rubino indicated to the smuggler, who was not identified, that he wanted to participate in smuggling. Rubino later supplied six letters of support for people apparently seeking to enter the United States illegally.

Prosecutors charged Rubino with laundering money between September and December of last year to conceal the fact that the owner had gained it through unlawful activity.

MedSys, in a report filed Monday with the U.S. Securities and Exchange Commission, said it would "review and investigate the allegations." The company said it would look for an interim chief executive officer in case Rubino could not remain the company head.

Neither Rubino nor other MedSys officials could be reached for comment. Company shares held steady at 7.2 cents Thursday.

The same day Rubino was charged, the U.S. Attorney's Office also filed a laundering complaint against Joseph Corso Jr., who owns 12.3 percent of Medsys shares. Corso, of Staten Island, has told the U.S. Securities and Exchange Commission that he intends to seek control of MedSys.

Prosecutors said Corso received $100,000 in cash from someone he believed was an illegal alien smuggler and gave the person a check for the same amount. The complaint said the smuggler was actually an undercover law enforcement officer.

Corso also is accused of agreeing to transfer ownership of nine properties to the smuggler in return for $6.55 million, of which Corso would get 10 percent.

Corso could not be reached for comment.

MedSys provides medical technology and support services to the health industry, including diabetes and respiratory supplies. The Over-The-Counter Bulletin Board delisted the company in December for failing to file a quarterly financial report.

In May, MedSys reported nine months sales of $5.7 million, and a loss of $3 million.

Rubino, 42, who earns $125,000 as CEO, joined MedSys as chief financial officer in November 2004. He previously worked for Publicis/Saatchi & Saatchi on pharmaceutical and health care accounts, and for KPMG Peat Marwick.

The charge against Rubino came 16 months after the FBI raided U.S. MedSys' offices in Hasbrouck Heights and removed several boxes of records. Agents also copied computer files.

The same day, the FBI raided the Denver offices of an attorney, Peter Futro, who was formerly chairman of MedSys, according to the Rocky Mountain News. The newspaper reported that a company controlled by Futro at one point owned 83 percent of MedSys stock, until Futro's company sold most of it.

MedSys, which previously had its headquarters in Denver, moved to New Jersey after Futro, two board members and the company's then CEO resigned, the newspaper reported.

E-mail: morley@northjersey.com



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