Investigation of Priest's Nonprofit Focuses on Possible Theft of Funds and Hiring of Former State Legislator Who Arranged Grants

By James T. Mulder
The Post-Standard
December 20, 2012

http://www.syracuse.com/news/index.ssf/2012/12/investigation_of_priests_nonpr.html

Rev. Peter Young of Albany, founder of a sprawling nonprofit that provides alcohol and drug rehab services.

Syracuse, N.Y. -- State and federal officials are investigating an alcohol and substance abuse nonprofit agency run by a Catholic priest that operates in Syracuse and other locations throughout the state.

Attorney General Eric T. Schneiderman announced today the former chief operating officer of 820 River Street, an arm of Peter Young Housing, Industry and Treatment, has been arrested and charged in Rensselaer County Court with embezzling at least $200,000 from the nonprofit over a four-year period.

Dennis Bassat, 53, of Middle Grove in Saratoga County, was charged with grand larceny, criminal possession of a forged instrument and falsifying business records. He pleaded not guilty at his arraignment today.

Peter Young Housing, Industry and Treatment, PYHIT for short, was founded more than 50 years ago in Albany by Rev. Peter Young. The nonprofit has owned the LeMoyne Manor in Liverpool since 1998. It operates a jobs training school there for recovering alcoholics, drug addicts and other individuals. It also operates a residential program for people in recovery at 420 Gifford St. in Syracuse.

Bassat used to head the PYHIT Foundation, said Michelle Hook, a spokeswoman for Schneiderman.

Young, 82, could not be reached for comment.

His nonprofit released a statement to the Albany Times-Union that said it uncovered possible wrongdoing by an employee in 2011.

“An internal investigation followed which resulted in the termination of several employees, and notification by Father Young’s organization to the state. An audit was conducted over the past year by the state. Father Young’s staff fully cooperated in the audit, and followed the state auditors’ guidance given during the audit process,” the statement said.

The statement indicated Young’s programs have reorganized management teams and hired new program leaders. “We have brought in an experienced financial consultant to guide the programs to improved financial controls, and a comprehensive corporate compliance program was implemented with training of all staff,” the statement said.

Hook said investigators are still trying to determine if other officials at PYHIT were involved. The FBI and the state Commission on Quality of Care and Advocacy for Persons with Disabilities also are involved in the investigation.

The Attorney General’s Office seized records last week from Young’s personal office in Albany and the nonprofit’s locations in Schenectady and Menands, Hook said.

PYHIT received funding through state grants, legislative member items and contracts, according to Schneiderman’s office.

“Stealing from a nonprofit that provides services to people with drug and alcohol addiction, including those who are homeless, demonstrates a willingness to place one’s greed far above the needs of the community,” Schneiderman said in a prepared statement.

The Times-Union reported investigators are also examining the circumstances under which a former state assemblyman from Brooklyn, William F. Boyland Dr., was on the payroll of Young’s nonprofit after Boyland arranged a series of state grants for the organization.

Here’s what the indictment against Bassat alleges:

He wrote numerous checks from 820 River Street’s checking account to fictitious persons. Bassat signed timesheets which indicated the fictitious persons performed maintenance or repair work for 820 River street, or he signed mileage log sheets indicating the fictitious persons traveled for business purposes on behalf of the nonprofit corporation and were entitled to mileage reimbursement. After drafting the checks, Bassat or an unidentified accomplice signed the person’s name on the back of the check and either cashed or deposited the checks. The scheme went on for a four-year period ending in 2011.

The Times-Union reported Bassat, a former convict who worked for Young’s organization for 25 years, was arrested Dec. 7 in Hernando County, Fla. where he had been living for several months