AG James gives $2.4M to Brooklyn Community Foundation to fund substance abuse treatment
Money recovered after Canarsie nonprofit pleaded guilty to fraud charges
The New York State Attorney General’s Office on Wednesday provided more than $2.4 million to the Brooklyn Community Foundation to fund substance abuse treatment programs throughout Brooklyn.
The funds are derived from charitable assets that remained after the Office of the Attorney General dissolved Canarsie A.W.A.R.E., a now-defunct nonprofit that provided outpatient substance abuse and mental health services — for its participation in a scheme that exploited some of New York’s most vulnerable residents and defrauded Medicaid.
In 2016, as a part of the Attorney General’s investigation into fraudulent substance abuse providers and their exploitation of individuals living in substance abuse transitional housing — also known as “three-quarter houses” — the OAG indicted Canarsie A.W.A.R.E. Inc. and its owner, charging them with defrauding Medicaid.
In September 2018, Canarsie A.W.A.R.E. pleaded guilty to grand larceny in the first degree. In 2019, the Attorney General’s Office won a State Supreme Court order to dissolve Canarsie A.W.A.R.E. and distribute its assets for use by other substance abuse treatment programs.