New York State Government Andrew Cuomo speaks at a press conference on September 8, 2020 in New York City.
Spencer Platt | Getty Images
The New York Attorney General is investigating whether a state health clinic has fraudulently obtained and distributed doses of Covid vaccines to the public, Governor Andrew Cuomo said Monday.
Cuomo declined to provide details of the investigation as it is ongoing, but noted that it concerns ParCare Community Health Network, which was identified by the state as a provider in Orange County, New York. Parcare allegedly misrepresented itself to the state’s Department of Health to obtain vaccine doses, Cuomo said.
Dr. Howard Zucker, New York State Commissioner, said in a statement released this weekend that the clinic may be [the vaccine] to members of the public – contrary to the state’s plan to administer it first to primary care health workers, as well as nursing home residents and staffers. “
Because doses of the vaccine are so scarce, states are rationing the vials to certain priority groups before making them more widely available.
ParCare did not directly answer CNBC’s request for comment, but the clinic said on Twitter that it will “actively cooperate” with the New York State Department of Health.
It is one of the first cases of suspected fraud related to Covid vaccines, but is unlikely to be the last, Cuomo said, adding that fraud with valuable goods is “almost an inevitable function of human nature.”
“We want to send a clear signal to providers that if you break the law on these vaccinations, we will find out and you will be prosecuted,” Cuomo said in a newsletter Monday. ‘You will see this more and more. The vaccine is a valuable product and there are many people who want the vaccine. ‘
New York State Police has conducted a criminal investigation, Cuomo noted, and will refer the case to New York AG Letitia James, whose office did not answer CNBC’s request for comment.
To send a clear signal to potential vaccine scofflaws, Cuomo said he will sign an executive order on Monday outlining the ramifications of defrauding the state when it comes to vaccine distribution. He said the state can fine offenders up to $ 1 million and the state will revoke the health care provider’s license to practice in New York.
“We take this very seriously,” he said. “We will find out and it is not worth risking your driver’s license, as well as a possible civil and criminal penalty.”
Cuomo described the sentences as “the most severe in the nation,” adding that New York takes a “hyper-cautious, hyper-vigilant” approach.
“We’ve put in place the sanctions. We’ve taken the precautions, but when you’re dealing with thousands of people and hundreds of organizations, and a valuable product, expect some degree of fraud,” said Cuomo. “As surely as night follows day, you will have people cheating on the government.”
“I understand the value of one bottle,” he added. “Some of those bottles can hold ten vaccines. You could sell that one bottle, so I understand the temptation. ‘