New York City investigators are looking into more than 30 cases of potential nonprofit fraud, the New York Post reports.
The investigations follow a 2006 scandal at the Gloria Wise Boys and Girls Club, in which two executives confessed to misappropriating $1.2 million.
The new inquiry will review $3.8 billion in 2007 city contracts with nonprofit health and human services organizations.
Rose Gill Hearn, who spearheaded the new investigation, told the Post that fraud typically has involved executives asking their staff to create invoices for projects that didn’t take place, or to approve checks for home improvements and other personal expenses.
She blamed lax oversight by nonprofit boards of directors, and said all the investigations could lead to criminal prosecutions both in New York City and at the state level.
The New York Post, February 10, 2008