September 20, 2006

Indictment in Five Towns Community Center Probe

Rice, Weitzman encourage residents to report suspicious activity to authorities

Contacts:
Eric Phillips, D.A.’s Office, 516-571-2994
Allen Morrison, Comptroller’s Office, 516-571-2383

MINEOLA, NY - Nassau County District Attorney Kathleen Rice and Nassau County Comptroller Howard S. Weitzman announced today the results of an investigation and financial audit into the Five Towns Community Center.  Rice announced that a Grand Jury has indicted a Five Towns Community Center bookkeeper in connection with a check-cashing scheme that resulted in more than $50,000 in losses to the community center.

In conjunction with the announcement of the indictment, Comptroller Weitzman released his office’s audit of the Five Towns Community Center, detailing, among other things, “lax oversight,” “inadequate internal controls,” and a “failure to report missing funds to the authorities.”

Lawrence, New York.  The community-based agency initially launched an internal investigation that resulted in an employee returning a small amount of money.  An audit of those accounts within the community center performed by the Comptroller confirmed financial discrepancies in the amount of $7,000.  After hiring a forensic auditor to audit additional accounts, the Five Towns Community Center discovered potential thefts from other accounts amounting to more than $50,000.  The case was then referred to the Nassau County Police Crimes Against Property Squad and the Nassau County District Attorney’s Office, where an investigation into the center’s accounts confirmed $51,741.85 in losses.

“This indictment should serve as a reminder to the public that these incidents need to be reported to the authorities and not handled internally,” said Rice. 

Comptroller Weitzman said, “One of the clearest lessons of the scandals in the Roslyn and William Floyd school districts was that officials of any organization have a fiduciary responsibility to report illegal activities to law enforcement agencies that have the staff and resources to fully investigate wrongdoing.  Not only did Five Towns fail to promptly notify law enforcement about the theft, it also failed to disclose the missing funds to auditors from my office until questioned.  The Comptroller’s Office will work with the County Attorney to recoup all monies owed to the county.”

During the period audited (January 2003 – July 2005), Five Towns offered services under seven contracts with Nassau County, including drug counseling and programs for seniors and youth.  In 2004, the agency’s $3.3 million budget was funded by $962,000 from the county.  The Comptroller’s Office routinely audits agencies that receive substantial funds from the county.

Indicted by the Grand Jury was Anthony Savage, 41, of Bronx County, the bookkeeper of the community center, on charges of Grand Larceny in the Second Degree, three counts of Falsifying Business Records in the First Degree and Scheme to Defraud in the First Degree. 

It is alleged that from February 2004 to February 2005, Mr. Savage, managing the “AIDS Program” for the center, created at least 61 fraudulent checks drawn on the Five Towns general Accounts Payable account to individuals appearing as outside consultants for the program in the business records of the community center.  It is alleged that these individuals, currently under investigation, cashed the checks and, it is believed, split the proceeds with Mr. Savage.

In May, Brigette Barker, 35, of Hempstead, a Five Towns employee, was arrested and charged with Grand Larceny in the Third Degree.  She later pleaded guilty and is scheduled to be sentenced October 27, where she faces a maximum of seven years in prison.  Additional accomplices are still being sought in connection with the check-cashing scheme.    

Mr. Savage faces a maximum of 15 years in prison if convicted of the charges.

Assistant District Attorney Robert Cavallo of the District Attorney’s Public Corruption Bureau is handling the case for the District Attorney’s Office.  Mr. Savage is being represented by Steven Gaitman, Esq.

The charges are merely accusations and the defendant is presumed innocent until and unless proven guilty.

Five Towns Community Center Audit Fact Sheet - (.pdf format)

Five Towns Community Center Audit Report - (.pdf format)