NUMC Heist — The Theft of Science and Public Trust
INVESTIGATION

NUMC Heist — The Theft of Science and Public Trust

| By Killian Yates
Reading time: ~5 minutes Category: Healthcare Fraud

Let's get something straight: this isn't just about money. This is about deliberately dismantling a Level 1 trauma and research hospital, Nassau University Medical Center (NUMC), to starve it of life—not just fiscally, but clinically and scientifically.

Over $1 billion has allegedly been siphoned off over the years in a scheme that faked New York State's Medicaid contributions to unlock federal matching funds, only to pull the state's share back into offshore accounts. That's not just fraud—it's the weaponization of bureaucracy against public health.

The alleged scheme targeted the Disproportionate Share Hospital (DSH) Fund—a federal lifeline for hospitals that serve high volumes of low-income, Medicare, and Medicaid patients.

False Claims Act Violations and FWA at the Highest Level

Under the False Claims Act, submitting false documentation to obtain federal funds constitutes a violation. If Bruderman's evidence holds, this isn't an isolated mistake—it's a long-term Fraud, Waste, and Abuse (FWA) scheme enabled by collusion between former hospital leaders, state officials, and possibly even federal enablers.

NUMC was supposed to receive tens of millions each year in matching funds for care delivered to Medicaid and Medicare patients. But when the state stopped putting up its share, the hospital fell into a $180 million deficit.

In 2022, Bruderman took over. By 2025, NUMC was on track for an $11 million profit. Why? Because he followed the money trail and exposed what looks like a premeditated financial chokehold.

What They Stole Wasn't Just Money

NUMC is not just a hospital—it's a training ground for doctors, a hub for trauma response, and a research partner in medical organic chemistry. The implications of sabotaging such an institution go far beyond spreadsheets.

Direct Consequences:

  • Cancelled or delayed clinical research trials
  • Setbacks in drug development and ethical testing pipelines
  • Loss of professional staff and researchers
  • Reduced access to critical trauma care for Long Island residents

Indirect Consequences:

  • Erosion of public trust in the healthcare system
  • Permanent damage to the state's research and teaching infrastructure
  • Long-term loss of intellectual capital from marginalized communities
  • Massive downstream cost from untreated health conditions that snowball into preventable deaths

This Wasn't Negligence—This Was Malice

This wasn't an accounting error. This was a calculated fraud to fake compliance with federal Medicaid rules and funnel taxpayer dollars into dark corners while leaving a vital medical facility to rot. If true, it's a textbook case of violating federal fraud statutes.

According to reporting by the NY Post, Bruderman uncovered documentation of funds cycling through offshore Cayman Islands accounts—temporarily shown to federal auditors, then removed, leaving only the federal funds in play. If substantiated, the documentation could result in criminal charges under both civil and criminal provisions of the False Claims Act.

When Bruderman alerted the governor's office, he didn't get a medal. He got ghosted. That's the cost of telling the truth in an empire built on institutional gaslighting.

Key Sources

This article was written for Fraud Frog by Killian Yates. Source material includes public records, DOJ guidelines, and reporting by the New York Post and Office of Inspector General (OIG).

© 2025 Fraud Frog |

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