Manhattan prosecutors are reportedly looking into whether top executives at St. Vincent's Hospital purposely let it go broke so private developers could buy the property.
The New York Post says fraud investigators with the Manhattan district attorney's office are looking at millions of dollars in payments made to St. Vincent's executives and consultants before the hospital declared bankruptcy.
Sources tell the paper that bankruptcy allowed the hospital to get approval from the state to sell to the Rudin family, which plans to build luxury housing on the site.
A spokeswoman for the hospital tells the Post that it had not been contacted by the district attorney's office and is not aware of any investigation.
St. Vincent's Hospital closed in April 2010.