THE BRONX - The New York State Department of Health has announced it will cut Medicaid funding to former state Sen. Pedro Espada, Jr.'s health care clinic.

Espada is accused of stealing $500,000 from the Soundview Health Center to fund a lavish lifestyle.

Officials say the decision is due to the clinic's lack of progress in turning over documents requested by the state and for retaining the former senator and his son in management roles.

The clinic has until Sept. 12 to respond to the decision before funding is terminated.

Espada battles claims that Soundview clinic could lose fundingEx-state Sen. Espada, son face new tax-evasion charges