AG Donates $2.4M Settlement To Help Substance Abuse In Brooklyn

CROWN HEIGHTS, BROOKLYN — More than $2.4 million from an organization that exploited those looking for substance abuse treatment will finally be spent to help those they were meant for, according to Attorney General Letitia James.

James announced this week that $2.4 million derived from the assets of a nonprofit that participated in a scheme to defraud Medicaid will be donated to the Brooklyn Community Foundation for substance abuse treatment programs throughout the borough.

“Today's agreement ensures that these funds will finally be used in the manner in which they were intended — to support some of our most vulnerable communities," James said. "I thank the Brooklyn Community Foundation for their partnership and dedication to helping New Yorkers access these lifesaving treatment services.”

The chunk of money comes after the Attorney General's Office indicted and later dissolved a group called Canarsie A.W.A.R.E., which pleaded guilty in 2018 to grand larceny charges for its participation in a Medicaid scheme.

The case ended in 2019 with an agreement to distribute the organization's assets to other substance abuse treatment programs. Under New York’s Not-for Profit Corporation Law, assets remaining after the dissolution of a nonprofit organization must be distributed to another organization engaged in similar activities.

BCF will use the money to award grants to providers of substance abuse treatment over the next three years and monitor their use of the funds, according to the AG.

“We are deeply honored and excited to partner with the Office of the Attorney General to redistribute these funds in a way that will repair harm and provide vital resources to trusted and thoroughly vetted community-based health providers,” said Brooklyn Community Foundation President Cecilia Clarke.