Arrest 2 ACS Staffers For $1M Ripoff Of Adoption Payments
By DAVID SIMS

Two high-ranking Administration for Children's Services officials along with two other child-care workers were charged by city and Federal law-enforcement officials July 16 with embezzling more than a million dollars intended for needy children by funneling adoption money to their own bank accounts.

The four people charged by the Department of Investigation were Lethem Duncan, the Deputy Director of the Payment Services Department in ACS; Nigel Osarenkhoe, the Supervisor of Adoptions within that department; Stay Thompson, the Fiscal Director at non-profit foster care agency Concord Family Services, and Philbert Gorrick, an independent contractor with Concord.

A Conduit for Phony Payments

For the last three years Mr. Osarenkhoe allegedly used his position at ACS to authorize adoption payments to Ms. Thompson, who posed as an adoptive parent after Mr. Duncan recommended her. Ms. Thompson then allegedly shared the money she received, approximately $79,000, with Mr. Osarenkhoe and Mr. Duncan. All were arrested after Mr. Duncan, who cooperated with DOI after his role in the alleged scheme was uncovered, sent Mr. Osarenkhoe his share of the proceeds of an adoption payment.

Ms. Thompson also allegedly cooked up a scheme with Mr. Gorrick to request a fictitious payment from ACS for $375,000 in computer services in 2005. Mr. Duncan, who arranged for ACS to make the payment, allegedly shared the dividends with Ms. Thompson and Mr. Gorrick. After they allegedly tried the same scheme again this April, this time submitting an invoice for more than $700,000, they were arrested after receiving a check from Mr. Duncan.

U.S. Attorney for the Southern District of New York Michael J. Garcia and city Investigation Commissioner Rose Gill Hearn said that Mr. Gorrick used the stolen money to pay for a 2006 BMW 750 LI and a 2006 Range Rover, as well as to cover $30,000 in rental payments in a luxury apartment. The city has since stopped using Concord to place children, stated ACS Commissioner John Mattingly.

Mr. Duncan faces up to 75 years in prison for charges including mail fraud, embezzlement and money laundering. Ms. Thompson faces similar charges and up to 35 years in prison, while Mr. Osarenkhoe is charged with mail fraud conspiracy and faces up to 20 years, and Mr. Gorrick faces up to 5 years. All may also be fined $250,000 or more.