June
2017
Tuesday, August 02, 2011
RUSS BUETTNER, The New York Times
Submitted by: T. Hawkins

Original Nonprofit Care For Disabled A Personal Goldmine For Executives

Medicaid-financed non-profit organizations serving the developmentally disabled are raking in millions of dollars in public funds while executives are gorging themselves on the government teat.

"Medicaid Moguls" are what a former official with the New York State Office of Mental Retardation and Developmental Disabilities calls the executives who game the system for every penny they can swindle. 

Non-profits that specialize in the care of the mentally disabled are almost entirely funded by public money. They also are subject to next to zero oversight by any government office and therefore are completely unnacountable for how the funds they receive get spent. 

The bottomless pit of Medicaid funding combined with inept oversight provides executives like Philip and Joel Levy of The Young Adult Institute with an open door to scam the system for millions of dollars in additional reimbursements. There are so many loopholes in Medicaid laws that they are able to pay themselves salaries of $1 million per year, directly use Medicaid funds to pay for their children's college educations and pay for incidentals like a luxury apartment for their child's college "housing". 

The Levy brothers are but two of thousands of non-profits across the country that take extreme advantage of public funds for individual profit. However much they have done to create a viable system for the care of the disbaled, they have also used their positions to influence policy that has allowed them to reap millions of dollars in peronsal profit. They are crooks like any other crooks.

[NYT] "In June, two days after The New York Times e-mailed a Young Adult Institute spokesman seeking more detail about the [college] tuition program [for the children of executives], [both of] the Levy brothers ended their employment there" and each retired with deferred compensation packages totaling about $1.8 million.

We have talked before about the misnomer that is "non-profit". It is high time that every so-called non-profit gets anal-probed to assess whether or not funds are being spent appropriately. There is no question that this country is broken, but it never fails to amaze us just how deep the infection of greed is emebedded in our collective skin. 

Read the rest of this enraging story here.

Posted by Editor on 08/02/11 at 01:54 PM •  (0) Comments

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