New York State Governor Andrew Cuomo speaks at a news conference on September 8, 2020 in New York City.
Spencer Platt | Getty Images
The New York attorney general is investigating whether a health clinic in the state fraudulently obtained doses of the Covid vaccine and distributed them to the public, Governor Andrew Cuomo said on Monday.
Cuomo declined to provide details of the investigation because it is ongoing, but noted that it involves the ParCare Community Health Network, which the state has identified as a provider in Orange County, New York. ParCare reportedly misrepresented itself to the state health department to obtain doses of the vaccine, Cuomo said.
New York State Health Commissioner Dr. Howard Zucker said in a statement released over the weekend that the clinic may have “diverted [the vaccine] to members of the public – as opposed to the state’s plan to administer it first to frontline health professionals, as well as residents and nursing home employees. ”
As doses of the vaccine are scarce, states are rationing the vials for certain priority groups before they are made available more widely.
ParCare said in a statement to CNBC that it “will actively cooperate” with the investigation. A representative from the clinic added that “Cuomo himself stressed the importance of obtaining all the facts, and providing the facts to the state is exactly what we have done and will continue to do.”
It is one of the first cases of alleged fraud associated with Covid’s vaccines, but it is unlikely to be the last, said Cuomo, adding that fraud involving valuable merchandise is “almost an inevitable function of human nature”.
“We want to send a clear signal to providers that if you violate the law on these vaccines, we will find out and you will be prosecuted,” Cuomo said at a news conference on Monday. “You will see more and more of this. The vaccine is a valuable commodity and you have many people who want the vaccine ”.
The New York State Police has been conducting a criminal investigation, noted Cuomo, and will refer the case to New York’s AG Letitia James, whose office did not return CNBC’s request for comment.
To send a clear signal to potential vaccine criminals, Cuomo said he would sign an executive order on Monday outlining the consequences of defrauding the state with regard to the distribution of the vaccine. He said the state could fine offenders up to $ 1 million and 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 there is no point in risking your license, as well as a possible civil and criminal penalty”.
Cuomo described the penalties as “the most severe in the country”, adding that New York is taking a “hyper cautious and hyper vigilant” approach.
“We have penalties in place. We have safeguards in place, but when you’re dealing with thousands of people and hundreds of organizations and valuable merchandise, expect a level of fraud,” said Cuomo. “As sure as the night follows the day, you will have people who defraud the government.”
“I understand the value of a bottle,” he added. “Some of these vials can make 10 vaccines. You could sell that single vial, so I understand the temptation.”