NY: nonprofit used state funds for exec perks - Los Angeles News | FOX 11 LA KTTV

NY: nonprofit used state funds for exec perks

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ALBANY, N.Y. (AP) - A state-funded nonprofit addiction treatment group has been accused of paying for excessive executive perks in a report that also says an employee bought Walmart gift cards for alcohol and cigarettes.

The report released Wednesday by New York Comptroller Thomas DiNapoli's office says Phoenix Houses of New York provided $223,000 worth of inappropriate perks, including bonuses and cars for executives, while under contract with the state. During the period examined, the organization received $8.5 million from the state Office of Alcohol and Substance Abuse Services to provide gambling and substance abuse services.

Investigators say one employee made $4,000 in appropriate purchases of Walmart gift cards to buy alcohol, cigarettes and other items and then attempted to conceal the purchases by submitting invalid receipts.

A Phoenix House spokeswoman declined comment until she could review the report.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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