Report: Yorktown Substance Abuse Center Employee Used State Money to Buy Alcohol, Cigarettes

A state audit has revealed that an administrative assistant at the Phoenix House in Yorktown used state money to make close to $4,000 of improper purchases and tried to conceal the purchases by faking receipts, State Comptroller Thomas P. DiNapoli said in a statement. 

The employee, who is not named in the released report, was supposed to purchase nine video game systems from Walmart, totaling $3,515, which were to be used by the facility in 2009. 

Instead, auditors said the woman diverted New York State funds intended for program-related expenses for "her own self-enrichment."

The woman, who was also a part-time Walmart employee, purchased Walmart gift cards totaling $3,953 with New York State funds. She then used those gift cards along with her Walmart employee discount to purchase personal items totaling $2,312.

The woman is said to have purchased alcohol, cigarettes and weight loss supplements. In addition, she then tried to conceal the purchases by faking receipts, officials said. 

"We referred this finding to law enforcement for further investigation," the report stated. 

The Phoenix Houses of New York, Inc. is a nonprofit drug and alcohol rehabilitation organization with 150 programs in 10 states, according to its website. 

When members of the Office of Alcoholism and Substance Abuse Services (OASAS) questioned the Phoenix House administrative assistant regarding the inconsistencies in the documentation she had submitted, she told officials she purchased five game systems and used the remaining balance to purchase gift cards.

In addition, officials said she told them did not maintain copies of the original purchase receipts for the gift cards and had subsequently handed out the gift cards to other Yorktown employees for program-related purchases. 

"We question the veracity of the Administrative Assistant’s denial that she purchased the personal items," the report states. "The Administrative Assistant admitted to purchasing the gift cards. In addition, her Walmart employee discount was sometimes used when the personal items were purchased."

DiNapoli referred the findings to U.S. Attorney Preet Bharara's office for review.

"My office will work closely with U.S. Attorney Bharara's office to ensure that those abusing the public trust are held accountable," he said. 

Karen Sodomick, Vice President of Marketing and Communications at Phoenix House, provided the following statement:

"The Phoenix House takes this audit seriously and started addressing the specific findings months ago. Phoenix House has had a strong relationship with New York State over the last 46 years that has resulted in helping tens of thousands of people dealing with substance abuse issues. We will continue working with all of the authorities including the Office of Alcoholism and Substance Abuse Services to address these issues and bring this matter to a close."

For more information on the findings, click here.