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STATE of NEW Cyork COMMISSION of INVESTIGATION If you have issues viewing or accessing this file contact us at NCJRS.gov. -~------- .... '-.'c-.... ~........ "_ .. ..-,,~ ...,_'_~_~,.,, __ ._~,,_'_ ... _.>"' .. ,_._., ._ .. _'"' ....... o_"~"_~_,".,,.,,_, .. -:~ •.• """----, .... --,-..~t'"'"-.... .... -_.. ~.,...._'-"''>"..'''. ""1.. ; ... :..,.._''"''A ........ .,.''''_. __ ~'~>' __ ~''''' .. ~~..,... __ ,._""'".'~ __•• ~,.,._ ...... , ~ .."_.~" .'>,_ >C' • \ National Criminal Justice Reference Service --------------~~------------------------------------------------nCJrs ~ This microfiche was produced from documents received for inclusion in the NCJRS data base. Since NCJRS cannot exercise -~ control over the physical condition of the documents submitted, the individual frame quality will vary. The resolution chart on STATE OF NEW cYORK this frame may be used to evaluate the document quality. 'I· COMMISSION OF INVESTIGATION 1.0 :: "111~8 "'" 2.5 B~ 11~13.2 2.2 w ..: ~ w :! ~~ .0 111111.1 "'0;. ..... " ji 111111.25 111111.4 111111.6 THE NEW YORK STATE OFFICE OF VOCATIONAL REHABILITATION MICROCOPY RESOLUTION TEST ":HART NATIONAL BUREAU OF STANDARr:;-Hl63-A '," Microfilming procedures used to create this fiche comply with the sta.!',dards set forth in 41CFR 101-11.504. Points of view or opinions stated in this document are JULY 20., 1977 those of the author(s) and do not represent the official position or policies of the U. S. Department of Justice. National Institute of Justice United States Department of Justice Washington, D. C. 20531 C) \. .270 BROADWAY " . ," NEW YORK, N.Y. 10007 J \,., " --------- THE TEMPORARY COMMISSIOW OF IWVESTIGATION OF THE STATE OF NEW YORK Commissioners DAV~P W. BROWW, Chai+man EARL W. BRYDGES, JR. ROBERT K. RUSKIW ERIC A. SEIFF ROBERT T. NICHOLSON First Deputy Commissioner Chief Investigator ALBERT SOHN WARREN E. DOWNING Assistant Commissioner and Executive Assistant Chief Accouptant E~LEEN M. BARRETT Assistant To The Chairman Staff for this ~nvestigation MEREDITH ANNE FEINMAN Assistant Counsel SIDNEY BLOOM PAYMOND C. RUDDEN Special Agent/Accountant Principal Special 82904 Investigator IVAN B. STOCK MAX W. RENNER Special Agent/Accountant Special Investigator Commission of Investlgatlon to the National CriminalJustice Reference Service (NCJRS). Further reproduction outside of the NCJRS system requires permis­ sion of the copyright owner. ; ii I ~---- THE NEW YORK STATE INTRODUCTION OFFICE OF VOCATIONAL REHABILITATION Throughout 1975, a scandal emerged in Niagara page County as a Grand Jury handed down one indictment after INTRODUCTION ••• , , . " • • ., • r • • . 1 another against individuals, corporations, and one 4 OVR-:aACKGROUND. ,. • !t • • • • • • , . counselor employed by the New York State Office of OVR/DMH ••••.• . .. , . , . ~. 8 Vocational Rehabilitation ("aVRil). 'rhe charges OVR ~D THE DRIVER TaAINlNG INSTITUTE II included fraud and related to a scheme of kick-backs to II overview. • • • . • • , . 11 the counselor from vendors of OVR. Thereafter, guilty 15 How DTI Useq OVR. ~ . pleas were entered in 23 cases, one against the OVR The RQ1e of Private Physicians. , . 20 counselor. In March 1976, the Grand Jury filed its 26 Rates and Training •. ., • • • • 0 • • • report which was later made public and which charged OVR uniforms. ,. · . 32 as being "rife with in~fficiency and poor administration." Job placement. • • • • • • • • • • • . , • • 34 Prior to the issuance of the Niagara Grand Jury The Role Of OVR Counselors ..• , .•• . ... 36 report, the Commission was urged to conduct an investiga­ Hunts point Multi-Service Center. • • 50 tion into the OVR program as administered in other parts The 1975 Review by OVR's Senior Administrators 57 of New York State. CASE LOAD S, •••• · . .. 58 The focal point of the Commission's eight-month OVR AND THE MIDTOWN SCHOOL OF BUSINESp .• 61 investigation into OVR was ,to determine whether the pro­ OVR FUNDS FOR RELATIVES OF OVR EMPLOYEES. • . 70 cedures and controls of OVR adequately safeguard the OTHER INVESTIGATIONS program from abuse by its own employees as well as the Niagara County Grand Jury Report ••.•.. •• 74 vendors and clients of OVR. Investigation of OVR in Erie County by the Statewide organized Crime Task Force. • • . 75 At the same time that this Commission undertook Report of the D.S. General Accounting Office .• 77 its investigation, the New York State Organized Crime CONCLUSIONS, • , . 82 Task Force commenced an investigation of OVR in Erie , • • t • • • • 85 RECOMMENDATlONS ••• • It • , It t County and their report was provided to this Commission 87 APPENDIX I. • . • !I • • t!' • • • • • .. f • • • • in April 1977. APPENDIX II ........... , • • • • • • • •• 88 APPENDIX III, • • • • , ., • • • • • .• . • • ., 89 - 1 - ------------- -- ----,------ - ----~ --------~ employees to on the public payroll. The victims The Commission concentrated its inquiry on the ~emain of the malfeasance and misconduct found by the Commission OVR program in the New York City area, with particular are, after all, the disab~ed citi~ens of this Stqte. reference to three OVR offices. In ,conducting its in- vestigation, books and records were examined and many employees, clients and vendors were questioned, both informally and in private and public hearings.* Some employees of OVR who i.nitially cooperated with this investigation later refused to testify and invoked their Constii.'utional rights against self-incrimination. Others refused to testify or cooperate from the outset. The failure of such State employees to respond to allegations or explain their conduct obviously did nothing to refute the Commission's general conclusions about the adminis- tration of the New York OVR program. This report focuses on those specific instances of abuse, waste, fraud, neglect and laxity in the OVR program disclosed by the Commission's investigation and public hearings. In addition, this report will discuss the failure of OVR's Albany administrators to fulfill their responsibilities and obligations to the disabled population by permitting incompetent or unfit State * The Commission held public hearings in New York City on .• May 3 and 4, 1977. Quotations followed by "P.H." refer to public hearing testimony. All other quotations are taken from private hearing transcripts. t - 2 - - 3 - ~~-- --- ------~ ---~- ----------_._------------------------------------- T-~-- annually of which 70-75% in recent years is funded by th~ OVR - BACKGROUND federal government and 25-30% by the State. Federally, The Office of Voc&tional Rehabilitation, part of the program is administered by the Department of Health, the New York State Department of Education, was created Education and Welfare, but its actual operation, manage­ more than fifty years ago to assist persons with voca­ ment and policy making is on the state level subject to tional disabi'li.ties in acquiring training and vocational federal guidelines. guidance so they migh.t become members of the labor This year's State Budget estimated that "approximately 104,000 individuals are market. expected to receive OVR services To become eligible for OVR services, an individual during 1977-78. Rehabilitation services include vocational and ad­ must meet three interdependent criteria~* justment counseling, college and post-secondary training, corrective medical aid and prosthetic devices, l.. Th.ere must be a d:i.sability which. is; and maintenance assistance and are administered through the office's 2. A substantial handicap to employment; and regular operations, cooperative agree­ ment with the Department of Mental 3. There must be a reasonable expectation Hygiene, Correctional Services and Office of Drug Abuse Services, and that the individual will benefit from through special projects which are 90% federally supported." OVR services (i.e., b~come employable). Upon a determination of eligibility; an individual OVR is headed by the Associate Commissioner of Education, appointeq by the Commissioner of Education. is considereq a "client, II and a plan of service is dratvn An Assistant Commissioner, also an appointee, is second up which specificies the type of "service" to be }?ro­ in command at OVR. All other OVR positions are within vided. That service may be manY things including, put the New York State Civil Service structure. not limited to, vocational training at a trade or There are several separate OVR divisions under business school, vocational training at a rehabilitation the direction of the Assistant Commissioner. The center, and college and graduate school training. Operations Division has the responsibility for providing currently, OVR spends approximately $60 million day to day services to OVR clients. The DirectOr of Operations directly supervises four area supervisors, * See NY Ed. Law §l002(1); (McKinney 1969) and Vocational Rehabilitation Act 29U.S fC.A. §706 (6) (Supp.l977). - 5 - - 4 - -------------,--.,------------------ ~- ~-- -~~~-- " who qre geogrqphically stationeq throughouttne State, by OVR, no apparent effort is made to enter into long anq q director of the OVR/Mental Hygiene Program. term contracts with vendors. Rather, each transaction Area supervisors ~nd the director of the OVR! is treated essentially as a first contract. Such dealings Mental Hygiene Program are responsiple for the activities may be appropriate for training wherein every client's of each local office within their jurisdiction directed, needs are unique. However, OVR also purchases supplies, for the most part, Py an associate counselor. In turn, uniforms and textbooks on behalf of its
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