NCJ Number
99782
Date Published
1983
Length
66 pages
Annotation
This report discusses former New York State Senator Vander L. Beatty's embezzlement of State funds granted to the Bedford Stuyvesant Development Corporation (Bed-Stuy) for neighborhood revitalization and recommends corrective measures to prevent similar frauds.
Abstract
The report first addresses distinctions between the Neighborhood Preservation Program and the State's Supplemental Budget funding of neighborhood preservation groups, noting that supplemental groups received far less scrutiny from the Division of Housing and Community Renewal (DHCR) and were essentially operating on their own. A summary of the investigation into Bed-Stuy focuses on methods used by Beatty to gain access to Bed-Stuy's monies. Checks written to nonexistent people on the payroll and then cashed, 'no show' jobs, loan repayments for nonexistent loans, and exorbitant rent paid for unused office space were the principal means used by Beatty to loot Bed-Stuy. Not a single building was rehabilitated, and no useful services were performed. The report covers Beatty's attempts to conceal his misconduct and audit results. Corrective recommendations focus on re-evaluating the Supplemental Budget process, restructuring supplemental appropriations, and reforming the prevalent philosophy at DHCR.