The Albany County District Attorney is investigating after a firm that operated the county's flexible spending accounts (FSA) suddenly closed earlier this month.
When the Albany-based firm closed, it took county money and left county employees unable to use their FSA cards to cover healthcare expenses, including doctor's visits, prescription medications and health products.
County officials said the firm's closure could be affecting other local governments across the state.
"I want the public to know this: If your money is at risk because someone broke the law, we will do everything in our power to hold them accountable," Albany County District Attorney Lee Kindlon said Tuesday. "We will have more as this investigation progresses."
The county paid the firm to deposit money into FSAs belonging to county employees.
Earnings that workers deposit into FSAs aren't taxed, but that money can only be used to cover medical expenses.
Albany County Executive Dan McCoy says his office is still calculating exactly how much county money the financial firm took when it closed.
"That takes time, to recoup the funds and the stuff that they owe everyone. And hopefully the money's there," McCoy said. "Usually, when they stop paying bills, there's something going on."
The county's human resources department first started noticing red flags around PGP in February. McCoy said the county stopped paying the firm four weeks ago and took preemptive steps to switch to a new company.
Officials say affected county employees should get new FSA cards with their full account balance next week.
The effects of the firm's closure may not be limited to Albany County. McCoy said the firm was being used by public employers throughout the state.
"They're they're locally here in Albany County, but they do work throughout the state of New York, multiple governments, probably BOCES, school districts, and so forth," McCoy said. "So unfortunately, there's not just us in this."
