March 7, 2017

Preet Bharara
United States Attorneys Office
1 St. Andrew's Plaza
New York, NY 10007

Dear Mr. Bharara:

As dedicated public servants, Im sure we can agree that holding elected officials to the highest
of ethical standards is of great importance. One of our fundamental roles as leaders of our state is
the protection of taxpayers against wrongdoing, as well as investigating and exposing
governmental malfeasance if it is suspected. We are the ones who give our people a voice and
earn their trust and respect through virtuous action.

Recently, details have emerged about actions that are not so virtuous at worst and questionable at
best. I write to you extremely disturbed about the most recent story that details the price of
admission in New York State.

Over a two day period, from October 29-30, 2013, Crystal Run Healthcare executives gave ten
separate $25,000 donations totaling $250,000 to Governor Cuomo. Many had not given to a New
York campaign in a decade.

I am concerned these donations set in motion the pay-to-play process for Crystal Run Healthcare
to receive $25.4 million in state funds through secret negotiations with the administration.

As detailed by Chris Bragg in the Albany Times Union, two months later, in January 2014,
Governor Cuomo proposed the Capital Restructuring Finance Program as part of the Executive
Budget proposal. This program would be used to administer grant money by the Department of
Health and the Dormitory Authority to those who submitted winning bids for health care
projects. This proposal passed in the budget in March 2014.

Bidding for the pot of $1.2 billion was set to begin in late 2014, but then was pushed to
September 2015. In March 2016, Crystal Run Healthcare was awarded the $25.4 million in
contracts for projects that had already commenced.

Either Crystal Run Healthcare executives knew, or as Chris Bragg noted, had a strong idea they
had or were going to win the competitive state bidding, or the state gave $25 million to private
projects that were already being built without the taxpayer subsidies from the program.

Theres certainly smoke here, and we need an investigation to confirm whether or not this is a
fire.
 Did the administration collude with Crystal Run Healthcare executives to pre-
determine a $25 million taxpayer-funded award that was supposed to be part of a
competitive bidding process?
Were Crystal Run Healthcare executives tipped off that the governor would be
announcing this new taxpayer-funded grant program?
Did Governor Cuomo and administration officials recommend to Crystal Run
Healthcare executives that campaign donations would increase the likelihood of
being awarded lucrative grant money?
Why did the competitive bid process get delayed nearly a year?
Did the groundbreaking of Crystal Run Healthcares new facilities have an
influence on when the bidding process would start?
Why was Crystal Run Healthcare awarded a $132 million no-bid contract from the
Department of Health in December 2015, three months prior to its next multi-
million dollar award?
What was the nature of the ten $25,000 campaign donations on October 29-30,
2013?
Why was each donation the same amount?
Did the governor or someone from the administration direct those donations to be
made?
Was money dispersed to top executives to donate as a way to evade campaign
contribution limitations?

I can tell you the repeated questionable pattern demonstrated by the administration is of utmost
concern to residents in my Assembly district and across the state. Were growing tired of the
excuses and weak justification of their actions.

Mr. Bharara, you have the unique power and authority to investigate those involved in this most
recent example of apparent corruption, bid-rigging, and pay-to-play epidemic to answer the
above questions and more.

Fortunately, we have an opportunity, through quick and decisive action on this matter, to ensure
the governor and his administration are conducting themselves in the utmost ethical manner. I
implore you to take swift action in convening an investigation so we can determine what may
have occurred and how we can best address the problem.

I continue to trust you doing whats right for the people of New York State.

Sincerely,

Steve McLaughlin
MEMBER OF ASSEMBLY
107th District