Star Ledger: Lawyer Resigned In Fear City Committed Fraud

According to a story in the Newark Star Ledger, Donald Scarinci—the lawyer of the Hoboken University Medical Center—has said in court papers he resigned because he felt that the city was "was committing fraud by engineering the bankruptcy of its hospital."

Scarinci, of the firm Scarinci & Hollenbeck, resigned from his position on July 16, according to the article, which also stated that the law firm is one of the bankruptcy's creditors.

The hospital's management company, Hudson Healthcare Inc., , after it was unable to pay bills to—among many others—PSE&G and the City of Hoboken. In total there are roughly 5,000 creditors.

HHI owes the city roughly $2 million in parking and rental fees.

The Hoboken University Medical Center is scheduled to be sold to HUMC Holdco LLC, a for-profit entity that also bought the Bayonne Medical Center.

The sale of the hospital has received much criticism lately—besides the bankruptcy—about the terms of the contract and the option of the most of the hospital going "out of network," which could mean that many Hoboken residents' health care would not be accepted at HUMC.

Recently, the hospital's CEO Spiros Hatiras left unexpectedly,

Councilwoman Beth Mason, one of the critics of the transaction, sent out an email to constituents on Wednesday stating that "(the sale) will look less like a sale that will protect our hospital and more like a real estate transaction that will lead to another high rise full of luxury condos."

On Tuesday night Councilman David Mello, an ally of Mayor Dawn Zimmer, said that if this sale doesn't go through, HUMC will close.

The final piece of the sale of the hospital to Holdco hinges upon the approval of the state commissioner of health. the sale of the hospital at a board meeting.