Collection Company Owner Stole $1.6 Million From Hospital: Police

The owner of a Rockville Centre collection firm was arrested on Wednesday after a nearly 2-year-long investigation alleged that he stole more than $1.6 million from a Bronx hospital.

Norman Alpren, 71, of Long Beach, and his company, Rockville Centre-based MBI Associates Inc., were arraigned and charged with one count each of first-degree grand larceny for allegedly stealing more than $1.6 million from St. Barnabas Hospital. If convicted, Alpren could face up to 25 years in prison.

“The defendant was a trusted businessman who handled accounts for numerous clients, but he allegedly stole more than $1.6 million from a hospital to keep his company afloat,” said Nassau County District Attorney Madeline Singas. “Hospitals are an integral part of our economy and should not have to worry about contractors lining their pockets with ill-gotten gains.”

Alpren is the president of MBI Associates Inc., a collection firm used by hospitals, including St. Barnabas. According to Singas, from Nov. 25, 2012, to Feb. 18, 2015, MBI allegedly failed to remit payment to St. Barnabas in the amount of $1,606,525.23. The money collected by MBI was for hospital services that had been rendered to the hospital’s patients. Instead of releasing the money to St. Barnabas as had been previously agreed upon, Alpren allegedly used the cash for the operating expenses of his company.

Alpren's lawyer, Robert Abiuso, refuted the charges.

"The hospital at issue has collected upwards of $13 million as a result of Mr. Alpren’s efforts over a four year period," Abiuso said in a statement. "Mr. Alpren is a pillar of his community, involved in many civic organizations too numerous to mention. We fully expect that Mr. Alpren will be vindicated at trial."

The hospital became aware that funds had allegedly been diverted and ended its business relationship with MBI in September 2014. MBI continued to receive funds belonging to the hospital for several months after the business relationship ended because certain collection efforts were already underway. That money was allegedly never returned and is included in the $1,606,525.23.

The district attorney's office received the case in April 2015 after efforts had been made by the hospital to collect what MBI owed to it. Alpren's arrest follows a 23-month investigation.

Photo: Nassau County District Attorney's Office