Ex-Adoption Chief At ACS, 2 Subordinates Indicted in Ripoff

A high-ranking official at the Administration for Children's Services and two child-care workers were indicted Oct. 15 for embezzling hundreds of thousands of dollars intended for needy children by funneling adoption money to their own bank accounts.

Nigel Osarenkhoe, former Supervisor of Adoptions at ACS, Stay Thompson, the Fiscal Director at non-profit foster care agency Concord Family Services, and Philbert Gorrick, an independent contractor with Concord, were all indicted by the U.S. Attorney's Office in Manhattan, which brought the charges along with the city Department of Investigation. Lethem Duncan, another ACS worker involved in the case, pleaded guilty in July, when the four were originally arrested.

Used Wife in Ruse

The indictment charges that between September 2002 and April 2006, Mr. Osarenkhoe authorized subsidy payments intended for adoptive parents totaling $265,930 to be sent to his prior address in the name of his wife. From December 2005 to August 2007, Mr. Osarenkhoe also approved $145,845 in payments mailed to Ms. Thompson, whose name was provided by Mr. Duncan, allegedly splitting the money among the three of them.

In a related scheme, Ms. Thompson and Mr. Gorrick submitted fictitious payment requests to ACS for $375,000 in computer services from Concord. They spent this money on, among other things, a BMW Sedan, a 2006 Range Rover and $30,000 in rental payments for an apartment in New York City.

Mr. Duncan cooperated with the DOI after his role in the alleged scheme was uncovered. Under the DOI's direction, he allegedly received a kickback in adoption subsidy payments from Mr. Osarenkhoe and a fictitious invoice for over $700,000 in computer supplies from Ms. Thompson and Mr. Gorrick, which prompted the arrests.

If convicted, Ms. Thompson faces up to 35 years in prison, Mr. Osarenkhoe up to 20 years, and Mr. Gorrick up to 5 years. Mr. Duncan has already pleaded guilty and faces up to 75 years behind bars. All may also be fined $250,000 or more. The case will be prosecuted by Assistant U.S. Attorneys Daniel Stein and William Harrington.