Monday, March 12, 2012

Investigators: Nonprofit Faked Job Placements

A nonprofit hired by New York City to help residents find jobs falsified 1,400 job placements, according to NYC investigators.

ABC News reported Saturday that Seedco, which operates in 14 states and Washington, D.C., used data from past and current clients to falsely claim they had placed the individuals in jobs. The NYC Department of Investigation claims the organization also claimed credit for placing people in jobs they'd lost before they sought help. The city's investigation found 1,400 false claims from 2010 to 2011, but there could be many more because of the city law permitting the shredding of documents.

City officials first learned of the allegations against Seedco in an August column in The New York Times. The matter was quickly referred to investigators after the article was published. The nonprofit's $22.2 million contracts with NYC are to be reassigned over the next two months.

Barbara Dwyer Gunn, president and CEO of Seedco, said in a statement that they "deeply regret" what happened at the local Workforce1 centers which they ran. She said the organization fired the employees responsible and implemented policy changes to ensure their data is accurate.

You can read the full story in ABC News.

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