What to Know
- A federal criminal investigation is underway into some executives and doctors at major Hudson Valley healthcare company Crystal Run
- Investigators want to know if campaign finance laws were broken as the company was seeking more than $25 million in New York State grants
- Several executives, doctors or their families donated $400,000 to Gov. Andrew Cuomo’s campaign, according to US Attorney
A federal criminal investigation is underway into some executives and doctors at major Hudson Valley healthcare company Crystal Run.
Investigators want to know if campaign finance laws were broken as the company was seeking more than $25 million in New York State grants after several executives, doctors or their families donated $400,000 to Gov. Andrew Cuomo’s campaign.
The $25 million grant was awarded in 2016 through a bidding process through the state Department of Health which controlled more than $1 billion in grant funds. The Albany Times Union first reported on the questions surrounding the Crystal Run-related donations.
Now, Manhattan US Attorney Geoffrey Berman wants to know if those political donors amounted to being straw donors and whether they were improperly reimbursed by the company or others.
A Crystal Run spokesman denies there was ever any pay-to-play. The spokesman says the company itself is not the target.
“Over a year ago, we received a subpoena requesting documents, and we have since complied. We have no reason to believe that we are the focus of a current federal investigation,” Loren Riegelhaupt, Crystal Run spokesman, said.
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The allegations of campaign finance irregularities were first raised in a civil lawsuit by a group of doctors against Crystal Run as the company sought to combine with the Montefiore Health System.
The doctors’ civil lawsuit was settled earlier this month, which also resulted in a confidentiality agreement. However, those doctors are expected to be among those who tell what they know to federal officials.
“As we have said repeatedly, any suggestion of a pay-to-play is entirely false,” Riegelhaupt said. “We remain focused on providing our patients with the quality, affordable care they deserve.”
A US Attorney spokesman declined to comment when asked what individuals inside Crystal Run are facing scrutiny. To date, no criminal charges have been filed.
The Albany Times Union first reported on the questions surrounding the Crystal Run-related donations.
