New York ACS Fraud Investigation Chases Tail

October 29, 2009 permalink

A New York City investigation into fraud has chased its own tail after the trail led to fraud by Nigel Osarenkhoe, a supervisor and member of the Quality Assurance Unit responsible for controlling fraud in his department.

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North Country Gazette

ACS Adoptions Supervisor Gets 33 Month Term

Posted on Thursday, 29 of October , 2009 at 2:51 pm

NEW YORK—The former supervisor of adoptions for the New York City Administration for Children’s Services has been sentenced to 33 months in state prison for conspiring to defraud the entity out of over $500,000 in ACS funds that were intended to subsidize New York City families who had adopted needy children.

ACS is the New York City agency responsible for providing services to needy children and their families. Among other things, ACS administers subsidies provided under New York State law to parents who adopt needy children. These subsidies amount to approximately $32 million per month.

Nigel Osarenkhoe was the supervisor of adoptions within ACS’s Payment Services Department from 1998 through mid-2008 and was responsible, among other things, for internal reporting of adoption subsidy payments.

Osarenkhoe was also a member of ACS’s Quality Assurance Unit. As a result, he access to the ACS computer systems involved in processing adoption subsidy payments.

Prosecutors say from 2002 through July 2008, Osarenkhoe abused his position at ACS by authorizing more than $500,000 in adoption subsidy payments, including approximately $265,930 via checks payable in the name of his wife and approximately $145,845 via checks payable to a co-conspirator, Stay Thompson, aka “Stay Daniels.” Thompson kicked back a portion of these funds with Osarenkhoe, prosecutors say.

On Jan. 20, Osarenkhoe, 49, pleaded guilty to a mail fraud. In addition to his sentence, Osarenkhoe was ordered to pay restitution and forfeiture each in the amount of $563,782.34.

Thompson was found guilty of mail fraud after an eight day jury trial on Aug. 13. She is scheduled to be sentenced on Dec. 1.

On July 31, 2008, Lethem Duncan, another defendant in this case, pleaded guilty to related charges. He is scheduled to be sentenced on Feb. 5. On July 21, Philbert Gorrick pleaded guilty to related charges and was sentenced to 33 months in prison.

Three other defendants, Oletha Rhodes, Brenda Towee and Tammy Moore, have also pleaded guilty on related charges in a case pending. They are scheduled to be sentenced on Dec. Rhodes, Towe and Moore each face a statutory maximum sentence of 20 years as a result of their convictions. 10-29-09

Source: North Country Gazette