Friday, August 12th 2011, 4:00 AM
Soundview Health Care Network and Espada signed a multi-year deal on Dec. 6, a week before he was indicted by the feds for misusing $500,000 for personal benefit.
"It was a thumb in the eye [at investigators]," said a Cuomo administration source.
The deal also came months after Gov. Cuomo, then the attorney general, accused Espada of "looting" Soundview of $14 million.
Soundview's board is made up of many relatives and cronies of Espada.
In recommending Soundview lose its Medicaid privileges, acting state Medicaid Inspector General James Cox decried a lack of seriousness by Soundview's board to come up with a compliance program.
The State Health Department also booted Soundview from the Medicaid program.