Insurance fraud might be one of those activities from which a nonprofit board might be reasonably innocent. At the same time, one would think the board might be curious about the luxurios lifestyle of its management or staff (whichever they are). According to Long Island News 12:
MELVILLE - A father and son from Melville are accused of pocketing money from a nonprofit group that helps people battling drug addiction.
According to Attorney General Eric Schneiderman, Alan Brand and his son, Jason Brand, abused Narco Freedom to pay for their own lavish lifestyles, including mansions in Florida and expensive cars.
Narco Freedom is a substance abuse agency that serves thousands of New Yorkers. It receives roughly $38 million in Medicaid funding.
The attorney general says the pair funneled cash from the nonprofit group to line their own pockets. He says Jason was cashing in on a bogus insurance claim of $3.5 million for one of his nonprofit's sites.
Jason's father is accused of taking taxpayer-funded Medicaid reimbursements to expand his car collection. A Corvette, Jaguar and Tesla were all seized by authorities Wednesday.
It is of course possible that the board would not see the "extra" funds on its reports but still.... And, of course, what about the checks and balances that should have been in place to prevent the possibilities of this action? Fool the board once, shame on the fooler. Fool the board twice, shame on the board. This board now has to get the act together to put into prevention methods although I would imagine that the Attorney General will be more than happy to help. Of course, if we were to not accept the premice that the board didn't have the least bit of curiosity about its staff's "extreme" well being, we might wonder something more.
So, what do you think the board should do next? Consult its liability insurance company; review policies and procedures; hire a new finance team?