April 26, 2013
By Stephanie West
Phoenix Houses of New York, Inc. provided inappropriate perks to its executives exceeding $223,000 while under contract with the Office of Alcoholism and Substance Abuse Services (OASAS), according to a report released today by State Comptroller
“This was money intended to treat people struggling with substance and gambling addiction, not to subsidize unwarranted perks for high-salaried executives,” DiNapoli said. “OASAS has to improve its oversight of service providers to ensure they are not enriching their executives at the expense of New York taxpayers. My office will work closely with U.S. Attorney Bharara’s office to ensure that those abusing the public trust are held
DiNapoli’s report found that Phoenix Houses, which provides chemical dependency and gambling treatment at various locations around New York City and Long Island, paid $91,050 for executive bonuses, $40,447 for fringe benefits and $35,996 for vehicle leases from July 2009 to June 2010. In addition, Phoenix Houses officials failed to report $290,000 in Medicaid revenue to OASAS.