Wednesday, May 23, 2012
 

 

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Feds sue NFP for not providing promised job placement services

NEW YORK - A civil fraud lawsuit against Structured Employment Economic Development Corporation, or SEEDCO, a national not-for-profit corporation that operated two New York City Workforce1 Career Centers, and Alex Saavedra, Shomari Greene, Alan Katz, Tagewatee Chandarpaul, Shandell Santiago-Velez, Mitchell McClinton, and Monique Tarry, former managerial employees of the company, for fraud in connection with a federally-funded program to provide job placement assistance to unemployed and underemployed New York City residents. 

Workforce1 is a service provided through New York City’s Department of Small Business Services, (“SBS”) that prepares and connects job candidates to job opportunities. 

According to the Complaint, SEEDCO fraudulently collected millions of dollars in federal funds for job placement services that it did not provide, as well as obtained contracts based on falsified performance reports.  The lawsuit seeks treble damages and civil penalties under the False Claims Act for the fraudulent claims and false statements submitted by SEEDCO.