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FBI investigating Upstate Medical University

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CNY/NNY/S. Tier: FBI investigating Upstate Medical University
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SYRACUSE, N.Y. -- New reports could spell more trouble for Upstate Medical University administrators.

According to the Syracuse Post-Standard, the FBI and federal prosecutors are now investigating compensation issues at the hospital.

Former Upstate President Dr. David Smith resigned last month after information was brought to light claiming he received additional income from two companies that do business with the hospital. The following week, Upstate's senior vice president for administration and finance, Steven C. Brady, suddenly retired.

The Post-Standard article says grand jury subpoenas have been issued for documents and testimony related to the payments. The state university is also conducting its own investigation.

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