Publish date:

Ex-Bear Exec Charged in Construction Scheme

Former managing director Hurtgen is indicted on influence-peddling charges.

A former

Bear Stearns

(BSC)

managing director in Chicago was indicted Monday on charges he took part in an influence-peddling scheme involving the awarding of hospital construction contracts.

TheStreet Recommends

P. Nicholas Hurtgen, an attorney and former Bear Stearns investment banker, was charged by federal prosecutors in Illinois with seven counts of mail fraud, wire fraud and extortion. Hurtgen and Stuart Levine, a local attorney and businessmen, were arrested Monday in conjunction with the investigation.

Prosecutors contend Hurtgen was part of a scheme to obtain multimillion-dollar financing deals for Bear Stearns by relying on "kickbacks and other fraudulent deals."

The indictment alleges Hurtgen, Levine and a third man used Levine's position on a local planning board to compel officials at a Chicago-area hospital to award a construction contract to a particular company. Prosecutors say Hurtgen took part in the scheme "because he wanted his employer, Bear Stearns, to receive the financing work."

Hurtgen resigned from Bear Stearns last July.