NYC Council Candidate Jessica Haller Raises over $55,000

NYC Council Candidate Jessica Haller Raises over $55,000 from over 425 donors, securing a $220,000+ budget for June 2021 Democratic Primary   BRONX, NY (July 13, 2020) – Jessica Haller, a Democratic candidate for the City’s 11th Council District in the Bronx, announced that her campaign has raised more than $55,000 from over 425 donors in her first filing period. With anticipated matching funds, will have over $220,000 for the June 2021 Democratic Primary.   “I am honored to have the support of so many people, specifically in the district, in the midst of unprecedented public-health, economic, and social-justice crises,” said Haller. “With the pandemic hitting shortly after our campaign was launched, I am proud that we were able to quickly devise an online strategy that mobilized hundreds of donors and volunteers committed to a sustainable, resilient, and equitable New York. We also spent our time talking to people one on one. Our campaign now has the financial resources and grassroots support to share our message and engage with voters over the next 11 months. We accomplished this without parties or events.” Haller’s NYC Campaign Finance Board filing, due on July 15, 2020, will report an estimated:   Actual funds raised  $55,827 Anticipated matching funds of $168,888 428 individual contributors Over 189 in-district contributions  Haller is the only female candidate to enter the District 11 Council race and is an active member of 21 in ’21, which was launched in response to the alarmingly low number of women serving on the New York City Council. Today, only 12 out of 51 Council members are women, down from 18 in 2009. “As someone who strongly believes in equality I find it more than troubling that in 2020 none of my New York City elected representatives — from the Mayor to the Public Advocate to the Comptroller to my City Council member — is a woman,” said Haller. “I believe that a diverse Council will do a better job bringing people of all backgrounds together to address the serious inequities, economic challenges and life-threatening crises facing New Yorkers.” ### About Jessica Jessica Haller, a climate activist, tech entrepreneur, and working mother of four, is a candidate to represent the 11th District in the New York City Council, which includes the Bronx neighborhoods of Bedford Park, Kingsbridge, Norwood, Riverdale, Van Cortlandt Village, Wakefield, and Woodlawn. Jessica has spent her life living along the 1 train and is raising her children in the Bronx, where she has lived for more than two decades. She has been shattering glass ceilings throughout her career and left a corporate career to pursue her passion for the environment and to understand how to create a thriving future for all people. As a life-long New Yorker, Jessica will use her environmental experience, justice centered service, and technical know-how to build sustainable neighborhoods in the Bronx. She will work to modernize public transit, make our buildings energy efficient and resilient, bring 21st century skills to our public-school children, strengthen community for seniors, and promote economic opportunity for all. Learn more about Jessica’s campaign at https://www.jessicahaller.com.

Staten Island Woman Sentenced To 2 Years In Prison For Defrauding Police Charity Of Over $400,000

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that LORRAINE SHANLEY was sentenced today to two years in prison for bank fraud and subscribing to false and fraudulent individual income tax returns, in connection with fraudulently obtaining over $400,000 from a charity providing support to the families of New York City Police Department (“NYPD”) officers killed in the line of duty.  SHANLEY pled guilty on September 20, 2019, before U.S. District Judge Sidney H. Stein, who imposed today’s sentence.

U.S. Attorney Geoffrey S. Berman said:  “With every paycheck, thousands of New York City Police Department officers and employees donated to charity to support the surviving spouses and children of officers killed in the line of duty.  Yet for years, Lorraine Shanley exploited that generosity, using her position as the charity’s volunteer treasurer to steal over $400,000 for herself and her family.  Today’s sentence sends a clear message that those who commit such fraud will face serious consequences.”

According to the allegations in the Complaint and Information, public court filings, and statements made in court:

From 2010 to 2017, SHANLEY served as a volunteer treasurer for Survivors of the Shield, a charity that provides financial support to the families of NYPD officers killed in the line of duty.  During that time period, Survivors of the Shield received approximately $1.9 million in donations, over 99% of which came from NYPD employees, from an average of 5,500 NYPD employees per year. 

SHANLEY was an authorized signatory on Survivors of the Shield’s bank account and credit card, and was authorized to use them for Survivor of the Shield’s operations.  But SHANLEY also used the bank account and credit card to benefit herself and her family members.  From 2010 to 2017, SHANLEY fraudulently obtained over $400,000 from Survivors of the Shield’s coffers, taking money for herself and relatives, and paying for various personal expenditures such as landscaping, dental bills, event tickets, airfare, hotels, and shopping at high-end retailers.

In addition to the prison term, SHANLEY, 69, of Staten Island, New York, was sentenced to three years of supervised release, and was ordered to forfeit $406,851 and to pay restitution of $406,851 to Survivors of the Shield, including $290,000 to be paid within 30 days of today's judgment, and $103,983 to the IRS.

Mr. Berman thanked the Internal Revenue Service and special agents with the U.S. Attorney’s Office for their outstanding investigative work.

BRONX MAN SENTENCED TO SIX TO 12 YEARS IN PRISON FOR SCAMMING UNDOCUMENTED IMMIGRANT COUPLE OUT OF $106,000

Defendant Posed as Attorney, Taking Money to Get Citizenship Papers; Threatened Victims with Deportation

  Bronx District Attorney Darcel D. Clark today announced that a man has been sentenced to six to 12 years in prison for defrauding a Bronx couple of more than $106,000 by posing as a lawyer who could provide the undocumented immigrants with citizenship. The defendant was also ordered to pay restitution of the full amount. 

 District Attorney Clark said, “The defendant preyed on a hardworking, trusting married couple for five months by promising them green cards and extended Visas in exchange for more than $106,000 dollars. He passed himself off as a lawyer. He threatened to have them deported when they couldn’t come up with the money. We will not tolerate victimization of vulnerable people.” 

 District Attorney Clark said the defendant, Robert Byrd, AKA Saul Roberto, 67, was sentenced today by Bronx Supreme Court Justice Robert Neary to six to 12 years in prison for second-degree Grand Larceny, two to four years for first-degree Scheme to Defraud, and one year for Practicing/Appearing as an Attorney-at-Law Without Being Admitted. All sentences are to run concurrently. The Judge also imposed a civil order of restitution for $106,603.21 and a permanent order of protection. A jury found the defendant guilty of the charges on July 29, 2019. 

 According to the investigation, between August 22, 2015 and January 31, 2016, the defendant posed as a wealthy business man in the music production industry and as an attorney. He promised he would be the couple’s employee sponsor and get their visa. As their alleged "sponsor" he made them believe he was providing them with all these services. The defendant never provided any documentation; instead he always told the victims there was a problem in the process and that he needed money to fix it. He threatened to call federal authorities and have them deported when they couldn't pay him.

Attorney General James Announces Sentencing Of Former Hospital Employee For Stealing Over $500,000

  New York Attorney General Letitia James announced the state prison sentence of Wendell Lewis, 32, of Brooklyn, NY, for stealing over $500,000 from two hospital systems: Interfaith Medical Center, a Brooklyn-based not-for-profit community hospital that recently came out of bankruptcy, and New York-Presbyterian Brooklyn Methodist Hospital. Earlier today, the Honorable Danny Chun of Brooklyn Supreme Court sentenced Lewis to two-and-one-half years to five years in prison following Lewis’ August 7^th guilty pleas to Grand Larceny in the Third Degree, a class D felony, and Identity Theft in the First Degree, a class E felony. 

“It is unconscionable that an individual would steal from hospitals that serve such an important and necessary role in the Central Brooklyn community,” said Attorney General James. “My office will continue to hold fraudsters accountable for stealing from institutions serving our most vulnerable citizens because this behavior will never be tolerated.”

The investigation conducted by the Office of the New York Attorney General identified that Lewis — while working in the payroll department of the two hospitals between 2015 and 2018 — engaged in a scheme to fraudulently direct monies from the hospitals to bank accounts he set-up using the personal identification of other persons. In 2012, Lewis was convicted of Grand Larceny in the Third Degree for committing similar conduct when he worked in the payroll department at Kingsbrook Jewish Medical Center, which is also located in Brooklyn. 

Between 2015 and 2018, Lewis allegedly used 14 fraudulent bank accounts in the names of other persons to steal over $500,000 from the hospitals. After the transfer of the stolen monies to Lewis’ controlled bank accounts, Lewis used the debit cards associated with those accounts to withdraw over $546,000 in cash from ATM machines throughout New York City. 

A review of Lewis’ personal bank accounts revealed that he used the stolen monies, in part, to live a lavish lifestyle, including taking multiple trips to the Caribbean; going on shopping sprees at high end stores like Barney’s, Zara, Burberry, and Gucci; and dining at some of New York City’s premier restaurants.

As part of the defendant’s sentence, Lewis forfeited over $129,000 that was seized by the Office of the New York Attorney General and executed a confession judgement for $325,000.

The Office of the New York Attorney General wishes to thank the State Department of Financial Services (DFS) for their assistance with this matter.

“Today, justice was done and although this can never undo the damage inflicted on these communities, we continue to stand ready to assist our hard-working law enforcement partners in holding accountable those who exploit our vulnerable communities or use our financial systems to commit crimes,” added DFS Superintendent of Financial Services Linda A. Lacewell.

The Office of the New York Attorney General also thanks DFS Investigator Albert Flowers for his assistance in the matter.

Attorney General James Announces Arrest And Indictment Of Former Employee Of Two Brooklyn Based Hospitals For Allegedly Stealing Over $550,000

Wendell Lewis Used His Position In The Payroll Departments Of Interfaith Medical Center And New York-Presbyterian Brooklyn Methodist Hospital To Steal Over $550,000

  Attorney General Letitia James today announced felony charges against Wendell Lewis, 32, of Brooklyn, NY, for allegedly stealing over $550,000 from Interfaith Medical Center (“Interfaith”), a Brooklyn not-for-profit community-based hospital that recently came out of bankruptcy, and New York-Presbyterian Brooklyn Methodist Hospital (“BMH”). The Attorney General's office alleges that Lewis, while working in the payroll department of the two hospitals between 2015 and 2018, engaged in a scheme to fraudulently direct funds from the hospitals to bank accounts set-up by Lewis using the personal identification of other individuals. In 2012, Lewis was convicted of Grand Larceny in the Third Degree for committing similar conduct when he worked in the payroll department at Kingsbrook Jewish Medical Center in Brooklyn.   

The defendant is charged with two counts of Grand Larceny in the Second Degree (a Class C felony), four counts of Money Laundering in the Second Degree (a Class C felony), two counts of Identity Theft in the First Degree (a class D felony), and two counts of Falsifying Business Records in the First Degree (a Class E felony). If convicted, Lewis faces a maximum of 7 1/2 to 15 years in prison.   

“Stealing from our hospitals is unconscionable, but allegedly stealing from those hospitals that support our most underserved communities is especially egregious,” said Attorney General Letitia James. “My office will continue to root out this fraudulent behavior, and use our powers to protect our most vulnerable citizens.” 

According to the Attorney General's filings and statements made by prosecutors, Lewis was an employee in the payroll department of BMH from 2015 to 2016. After Lewis’s termination in 2016 for reasons unrelated to the alleged theft, Lewis was hired by Interfaith, where he remained until Interfaith discovered the theft in 2018. As an employee in the payroll departments of BMH and Interfaith, Lewis had the ability to redirect the direct deposits of the hospitals salaried employees. In order for Lewis to conceal the alleged scheme, Lewis would among other techniques, add former employees of the hospitals back on to the payroll and direct their previous salaries to bank accounts he controlled, but that were in the names of other persons. After funding the fraudulent accounts, Lewis would then reverse the fraudulent payments to make them appear as if no monies were withdrawn from the hospital and to prevent IRS Form W-2s from being generated at year end. In an effort to remain undetected by the hospitals, Lewis would allegedly make the unauthorized entries to the payroll system by logging into the hospital’s computer system using the username of other employees in the payroll department.    

Between 2015 and 2018, Lewis allegedly used 14 fraudulent bank accounts in the names of other persons to steal over $550,000 from the hospitals.  After the transfer of the stolen monies to the Lewis controlled bank accounts, Lewis used the debit cards associated with those accounts to withdrawal over $546,000 in cash from ATM machines throughout New York City.  During this same period, Lewis deposited over $175,000 in cash into his personal bank accounts.  

A review of Lewis’s personal bank accounts revealed that Lewis used the stolen funds in part to live a lavish lifestyle, including taking multiple trips to the Caribbean, going on shopping sprees at high end stores, and dining at some of New York City’s prime restaurants. 

Lewis was arraigned today on the indictment before Supreme Court Judge Danny K. Chun in Kings County. Bail was set at $100,000 bond over $50,000 cash and the case was adjourned to May 1, 2019. 

The charges are merely accusations and the defendant is presumed innocent unless and until proven guilty in a court of law.  

Attorney General James thanks the State Department of Financial Services (“DFS”) Acting Superintendent Linda A. Lacewell for assistance with this matter. The Attorney General’s office also thanks DFS Investigator Albert Flowers for his assistance. 

Former Chief And President Of Briarcliff Manor Fire Department Pleads Guilty To Embezzling More Than $120,000

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York,  William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), Thomas P. DiNapoli, New York State Comptroller,  and George P. Beach II, Superintendent of the New York State Police, announced today that ROBERT M. GARCIA, the former president and chief of the Briarcliff Manor Fire Department in Briarcliff Manor, New York (“BMFD”), pled guilty to embezzlement of more than $120,000 from the BMFD.  GARCIA pled guilty today in White Plains federal court before U.S. District Judge Cathy Seibel.

U.S. Attorney Geoffrey S. Berman said:  “As he admitted today, Robert Garcia abused his positions of trust with the Briarcliff Manor Fire Department and Fire Council to engage in flagrant self-dealing.  He lined his pockets with Fire Department and Fire Council money to pay personal expenses, and then lied about it to cover his tracks.  Now Garcia may be facing prison time for his crime.”

FBI Assistant Director William F. Sweeney Jr. said:  “As a fire department official, Garcia was expected to be trustworthy and reliable, but, as he admitted today, he proved himself unprincipled by his deceitful actions.  For approximately four years, Garcia abused his elected position to channel over $120,000 into his personal accounts.  Instead of tending to the needs of the community, Garcia tended to his own needs.  Corruption may be a deep-rooted plant in parts of our society, but as today’s plea demonstrates, we are committed to rooting out corruption in all of its forms.”

Comptroller Thomas P. DiNapoli said:  “Mr. Garcia has admitted brazenly writing checks to himself for $122,000 from the Briarcliff Manor Fire Department.  Thanks to my ongoing partnership with United States Attorney Geoffrey S. Berman, the FBI and the State Police, he will now be held accountable.  This is a reminder to employ strong checks and balances and internal controls to guard public funds.”

According to the Information and statements made in related court filings and proceedings:

GARCIA was elected to the position of second assistant chief of the BMFD in or about April 2013.  His election to that position also made him an officer of the Briarcliff Manor Fire Council, which oversees the BMFD. GARCIA was thereafter elected to different administrative and operational positions within the BMFD, including first assistant chief, chief, treasurer, and president.  As a result, GARCIA was also an officer of the Fire Council from in or about April 2013 through in or about April 2017. GARCIA was given signatory authority over bank accounts held by the Fire Council and the BMFD starting in April 2013.

From in or about May 2013 to in or about March 2017, GARCIA embezzled money from the BMFD and the Fire Council by writing checks drawn on the BMFD’s and Fire Council’s bank accounts that he made payable to himself.  GARCIA then deposited these checks into his personal bank accounts.  He used the embezzled proceeds to pay personal expenses.  GARCIA covered up his thefts by making material misstatements regarding the purposes and payees of the checks he had written to himself on written reports he gave to the Fire Council when he acted as the BMFD’s treasurer from in or about 2014 through in or about April 2017.  GARCIA embezzled more than $120,000 from the BMFD and the Fire Council by writing approximately 150 checks to himself.

GARCIA, 51, of Ossining, New York, pled guilty to one count of embezzlement theft concerning a program receiving federal funds, which carries a maximum sentence of 10 years in prison.  The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as the sentence will be determined by the court.

GARCIA is scheduled to be sentenced before Judge Seibel on November 15, 2018, at 3:30 p.m.

Mr. Berman praised the outstanding investigative work of the FBI, New York State Comptroller and New York State Police.  

Former Baruch College Basketball Coach And Athletics Official Sentenced To 20 Months In Prison For Embezzling More Than $700,000

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that MACHLI JOSEPH was sentenced to 20 months in prison for embezzling more than $700,000 in funds intended for Baruch College for the rental of their athletic facilities.  JOSEPH pled guilty in January 2018 before U.S. District Judge Paul A. Crotty, who imposed today’s sentence.   

Manhattan U.S. Attorney Geoffrey S. Berman said:  “Machli Joseph used the facilities of Baruch College as his own cash machine, renting them out without approval and without compensation to the school.  All told, his scheme diverted nearly three-quarters of a million dollars that should have been paid to the college.  Our Office is committed to pursuing those who misappropriate educational funds for their own profit.”

According to the Information and Complaint filed in this case, and statements made during the plea proceeding:     

MACHLI JOSEPH served as an athletic department official at Baruch College between 2002 and 2016.  He served as Baruch’s women’s basketball head coach between 2004 and 2014, its men’s basketball coach in 2002, as assistant athletic director from 2003 to 2011, and as associate athletic director from 2011 until August 2016.  At times when the Baruch College gym was not being used by the school’s athletic teams, it could be rented out to outside parties.  In his administrative capacity, JOSEPH had control over those gym rentals and their scheduling.

On numerous occasions between 2010 and 2016, JOSEPH rented the gym to outside parties, ostensibly on behalf of Baruch College.  In instructing the renting parties on how to provide payment, however, JOSEPH directed that payment be made to entities that were not, in fact, connected to Baruch College.  Instead, they were entities with bank accounts over which JOSEPH had personal control, some of which merely sounded like Baruch-affiliated entities.  On several occasions, JOSEPH simply directed that payment be made directly to him or individual associates of his.  Many of these funds were ultimately spent on personal expenses and items for JOSEPH and his family, including renovations to his home in New Jersey.  All told, the scheme improperly diverted over $700,000 of payments intended for Baruch College.

In addition to the prison term, JOSEPH, 43, of Elizabeth, New Jersey, was sentenced to three years of supervised release and ordered to forfeit $787,194, and to pay the same amount in restitution. 

Mr. Berman praised the investigative work of the Department of Education – Office of the Inspector General and the New York State Inspector General’s Office.  

A.G. Schneiderman Announces Arrest And Indictment Of Wall Street Financier Charged With Defrauding Multiple Victims And Stealing $800,000

Anthony Nyame, CEO Of General Capital Corporation, Allegedly Stole Deposits From Clients Intended For Loans, Including $375,000 From A Bronx Church

   Attorney General Eric T. Schneiderman announced today felony charges against Anthony Nyame, 59, of the Bronx, for allegedly stealing $800,000 from multiple victims by fraudulently inducing them to believe his Wall Street based company, General Capital Corporation, had the ability to secure millions of dollars in loans. If convicted, Nyame faces up to 20 years in prison.

“The elaborate nature of this alleged scheme demonstrates just how shameless the defendant was in exploiting his victims,” said Attorney General Schneiderman. “It is unbelievable that there are some who would scam religious institutions for personal financial gain. We will not allow fraudsters to rip off New Yorkers, and those who do so will be held to account.”

According to the indictment and statements made by the prosecutor at arraignment, Nyame allegedly solicited unwitting victims into believing that his company could arrange for tens of millions of dollars in loans provided they pay hundreds of thousands of dollars to collateralize the loans. In one case, Nyame allegedly promised to obtain a $30 million loan for a Church located in the Bronx  that was seeking to build a multi-family dwelling on its property. Instead of using the deposits to secure the promised loans, Nyame allegedly diverted monies from the Church and other investors for his own personal use – including $71,000 in cash withdrawals and transfers to his personal bank account, $47,000 to pay for his Wall Street apartment and an additional $26,000 for assorted personal items. Nyame also transferred hundreds of thousands of dollars to multiple companies and people around the world.

As part of Nyame’s scheme, he allegedly sent forged documents and fake emails to his victims that purported to come from the United States Treasury, including fake emails from the former Under Secretary David S. Cohen. The goal of the forged documents and fake emails was to convince the victims that the loans were delayed because they were in the process of being approved and verified by the US Treasury.

Nyame was arraigned today on the indictment before Supreme Court Judge Gregory Carro in New York County Court.  Bail was set at $2 million bond over $1 million cash.

The defendant is charged with two counts of Grand Larceny in the Second Degree (a Class C felony), one count of Grand Larceny in the Third Degree (a class D felony), five counts of Criminal Possession of a Forged Instrument in the Second Degree (a Class D felony) and one count of Scheme to Defraud in the First Degree (a Class E felony).  

The charges against the defendant are merely allegations and he is presumed innocent unless and until proven guilty in a court of law.

The Attorney General thanks Special Agent Thomas Brodowski of the United States Treasury, Office of the Inspector General, for his assistance in this investigation.

HOW WOULD YOU SPEND $1,000,000 IN YOUR COMMUNITY?

HOW WOULD YOU SPEND  $1,000,000 IN YOUR COMMUNITY?

Improve a park?  Make a street safer?
Buy new technology for your local school?

Council Member Andrew Cohen

Is asking YOU to help decide how to spend $1 million of taxpayer money for community improvements. 

Join an upcoming neighborhood assembly to brainstorm ideas.

Bedford Park  Neighborhood Assembly

Monday, November 10th, 2014 – 7:00pm

Lovinger Theatre at Lehman College

250 Bedford Park Blvd


Refreshments will be provided.

To RSVP or for more info, 

Call 718-549-7300 or email 


dajohnson@council.nyc.gov

TONY ORLANDO CONCERT IN SETON PARK DRAWS CLOSE TO 1,000

   To the backdrop of the Whitehall building last night's FREE Tony Orlando concert in Seton Park was enjoyed by an estimated 1,000 people. This was one of Senator Jeff Klein's Summer Concert Series in the parks, which last year saw Aretha Franklin in this same park. The photos below will tell you the story as Tony Orlando warmed up the crowd with his boyhood days of growing up in the Bronx by Fordham Road. Then he went into his 90 minute concert and all who attended wished it could continue. Assemblyman Jeffrey Dinowitz introduced Bronx Borough President Ruben Diaz Jr., Councilman Andrew Cohen, and the sponsor of the concert State Senator Jeff Klein. Dinowitz, Diaz Jr., and Cohen all thanked Senator Klein for sponsoring the concert. Senator Klein said that he only wants the people of his district to enjoy their wonderful amenities such as Seton Park, and a concert such as this is the perfect way to enjoy Seton Park. You can click on a photo to make it larger.

Left - Bronx BP Ruben Diaz Jr. Stands next to Senator Klein as he waits for his turn to congratulate Senator Jeff Klein for the great concert.

Right - Assemblyman Jeffrey Dinowitz introduces the sponsor of the Tony Orlando Concert, and his good friend Senator Jeff Klein.

Left - Mr. Michael Blaustein of Senator Klein's office with Tony Orlando as Orlando points to what he use look like.

Right - Orlando poses with a local woman. 

A few more photos of the concert. 

An early photo of part of the crowd.

DiNapoli: Preschool Special Education Contractor Overcharged Taxpayers $875,000

This comes from New York State Comptroller Tom Dinapoli's office.

 

TheraCare Preschool Services Inc, a downstate provider of preschool special education services, overcharged state taxpayers by more than $875,000 for improper staff bonuses and executive compensation over a three-year period, according to an audit released today by State Comptroller Thomas P. DiNapoli.

“Audits by my office have found a continuing pattern of abuse in the state’s preschool special education sector,”DiNapoli said. “Many providers are continuing to take advantage of lax oversight to give themselves excessive salaries and unearned bonuses. Taxpayer dollars meant for children with special needs are being wasted. This has to stop.”

TheraCare, headquartered in New York City, is a for-profit organization that provides special education services to children between the ages of three and five who reside in New York City as well as Westchester, Nassau and Suffolk counties. TheraCare served 651 students during the 2010-11 school year and reported program-related costs for reimbursement of about $50.1 million for the three fiscal years ended June 30, 2011.

State Education Department (SED) guidelines state that the compensation paid to specific leadership positions, and charged to an SED program, may not exceed the “regional median compensation”for these positions. On that basis, DiNapoli’s auditors disallowed $316,539 in compensation paid to the executive director ($73,820), CFO ($111,796), and assistant executive director ($130,923) for the three-year period ended June 30, 2011.

Bonus payments to employees are reimbursable by SED only if they are based on merit as measured and supported by employee performance evaluations. Auditors found that TheraCare claimed $253,205 in expenses for bonuses predicated on the organization achieving its budget, not employee performance.

In addition, auditors found that TheraCare often awarded its teaching staff a sign-on bonus with the agreement that they will remain in TheraCare’s employ for at least one year. These payments are not performance based and thus do not meet the eligibility requirements for reimbursement by the state. TheraCare inappropriately charged SED $220,875 for these improper bonuses.

DiNapoli’s auditors also identified $76,766 in unnecessary and inappropriate South American recruitment-related costs and $9,513 in other non-personal service expenses that were either unsupported or not program-appropriate.

DiNapoli recommended:

• ED review the disallowances resulting from the audit, make the appropriate adjustments to costs reported and to TheraCare’s tuition reimbursement rates, and recover the overpayments as appropriate;
• SED work with TheraCare officials to help ensure that only eligible costs are claimed; and
• TheraCare ensure that its requests for SED reimbursement include only those expenses that are allowed.

SED agreed with the audit’s recommendations and has already made certain adjustments to future TheraCare reimbursement rates to recover some of the excess compensation. SED has also instituted a soon to be mandatory training course for providers. TheraCare disputed the audit’s findings. For a copy of the full report, including responses from SED and TheraCare, visit: http://www.osc.state.ny.us/audits/allaudits/093014/12s21.pdf

DiNapoli has identified fraud and improper use of funds in a recent series of audits of special education providers. His office has completed 22 audits of preschool special education providers, finding nearly $22 million in unsupported or inappropriate charges. There are currently ten additional audits of preschool special education providers in progress.

In December, Governor Cuomo signed into law legislation mandating audits of every preschool special education services program provider in the state by the Comptroller’s Office. The new law, a program bill of the Office of the State Comptroller, also tightens weaknesses in the program, including how students are evaluated and placed in programs, and how reimbursement is calculated.

Comptroller DiNapoli and Attorney General Schneiderman Announce Three Arrests in $200,00 Contract Fraud

  Comptroller Thomas P. DiNapoli and Attorney General Eric T. Schneiderman today announced the arrests of three contractors for conspiring to defraud the state of over $200,000 by submitting false invoices over a two year period for HVAC equipment, supplies and labor.

“These vendors shamelessly falsified numerous invoices to inflate their bills to the state in an effort to defraud the taxpayers of over $200,000,” DiNapoli said. ”My office will continue to monitor public expenditures, investigate corruption, and partner with law enforcement to ensure those who try to rip off the state are caught and punished. I thank Attorney General Schneiderman for his continued work as part of our joint task force to root out corruption in New York.”

“These greedy contractors sought to profit by defrauding the state, and now they are being held accountable,” Attorney General Eric T. Schneiderman said. “Comptroller DiNapoli and I will remain vigilant to ensure that New York’s hard-working taxpayers don’t get fleeced by corrupt contractors.”

Attorney General Schneiderman charged Charles Angelillo, Jr., 40, and his wife, Carol Angelillo, 39, owner and office manager of Classic Air Conditioning and Heating of Eastport, and Anthony Cuccinello, 46, owner of AM/PM Supply Corporation of Maspeth, with falsifying business records for a series of emergency contracts with the state Office of General Services from 2010 to 2012 on state contracts for heating, ventilation, and air conditioning (HVAC) equipment, supplies and labor.

All three were charged with multiple felonies including grand larceny in the second degree, falsifying business records and other charges. They were arraigned in Suffolk County Criminal Court on March 25 and released on their own recognizance. They are due back in court May 28.

The investigation revealed that almost immediately after receiving their first contract, the Angelillos started submitting false bills to the state for equipment they never purchased. Later, they forged invoices to double or triple the amount the state owed them. In 2011, the Angelillos allegedly enlisted Cuccinello to join the scheme. Together, the three defendants attempted to deceive the state into paying more than $200,000 in bloated payments.

The arrests are the latest in the combined efforts of the Comptroller and Attorney General’s Joint Task Force on Public Integrity which resulted in more than 30 public corruption arrests last year alone and more than $5 million in restitution.

The charges against the defendants are allegations. All defendants are presumed innocent until and unless proven guilty in a court of law.

Anyone with additional information on this matter or any other suspected public corruption is encouraged to contact the State Comptroller’s office by calling the toll-free fraud hotline at 1-888-672-4555; filing a complaint online at investigations@osc.state.ny.us; or mailing a complaint to: Office of the State Comptroller Investigations Unit, 110 State Street, 14th floor, Albany, NY 12236 or the Attorney General’s Office at 1-800-996-4630.