New York City Administration for Children’s Services (ACS)

http://www.northcountrygazette.org/2009/02/12/acs_computers/
http://www.northcountrygazette.org/2009/02/12/acs_computers/
http://www.northcountrygazette.org/2009/02/12/acs_computers/
http://www.northcountrygazette.org/2009/02/12/acs_computers/
http://www.northcountrygazette.org/2009/02/12/acs_computers/

Computer Vendor Defrauded Foster Child Agency
by NORTH COUNTRY GAZETTE on FEBRUARY 12, 2009 · LEAVE A COMMENT

NEW YORK—A man who provided computer services for the New York City Administration for Children’s Services (ACS) has pleaded guilty to conspiring to defraud the agency in a scheme that netted him and his co-conspirators $375,000 in ACS funds that were intended to assist needy children.

This plea is yet another in the series of arrests made in connection with alleged corruption within the agency. http://www.northcountrygazette.org/2009/02/12/needy_indict/

ACS is the New York City agency responsible for providing services to needy children and their families. Among other things, ACS administers payments to not-for-profit agencies that find and provide child care subsidies to foster parents.  ACS administers approximately $42 million in monthly payments to not-for-profit foster care agencies.

Concord Family Services, Inc. was a not-for-profit foster care agency that was paid by ACS from 1990 through 2008 to provide foster care services to needy children in New York City. Between 2005 and 2008, Concord had three contracts with ACS to provide foster care services, resulting in more than $28 million in payments from ACS to Concord. Gorrick provided computer services to Concord from 2004 until the time of  his arrest in July 2008 through his company, Contemporary Technologies Co.  and maintained office space for Contemporary Technologies at Concord.

In 2005, Gorrick and co-conspirator Stay Thompson, who was from 2004 until the time of her arrest in July 2008 theFiscal Director at Concord, agreed that Goorrick would accept a  payment from ACS for $375,000 for services that were neverprovided.

Lethem Duncan,  who from 1998 through the time of his arrest in July 2008 served as the deputy director of the Payment Services Department of ACS,  arranged for ACS to make the payment, and Gorrick, Thompson and Duncan shared the stolen money, prosecutors said. Gorrick used the proceeds to pay for, among other things, a 2006 BMW 750 LI sedan; a 2006 Range Rover; and at least $30,000 in rental payments for a New York City apartment in a doorman building with a private garage.

In April 2008, Gorrick, again working with Thompson, submitted a fictitious invoice to ACS for $711,420.25 in computer supplies which were never provided to ACS. Gorrick and Thompson were arrested in July 2008 after they received an ACS check for the $711,420.25 from Duncan who was then acting at the direction of the New York City Department of Investigation.

As a result of his plea to the embezzlement conspiracy, Gorrick faces a maximum sentence of five years in prison and a maximum fine of the greater of $250,000 or twice the gross gain or loss from the offense.

Duncan pleaded guilty before U.S. District Judge John G. Koeltl on July 31, 2008 to related charges.

Another defendant in the case, Nigel Osarenkhoe, pleaded guilty to related charges on Jan. 20 before Judge Jones.  Trial against Stay Thompson is pending. 2-12-09