A federal judge sentenced the former CEO of one of NYC’s largest homeless services contractors to six months in prison for fraudulently steering lucrative contracts to a business associate.
U.S. District Judge Vernon S. Broderick sentenced Thomas Bransky, the former CEO of Children’s Community Services (CSS), on June 30 after Bransky pleaded guilty to conspiracy to commit wire fraud late October.
The prison term will be followed by three years of supervised release.
The U.S. Attorney’s Office of the Southern District of New York prosecuted Bransky for helping to intentionally conceal his connection to Peter Weiser, a business partner who helped form and operate CCS. After the two covered up their business connection, Bransky helped Weiser attain service contracts and city contracts that charged $50 million in inflated prices, according to the city’s Department of Investigation…
PROCUREMENT & EXPENDITURE (STOPPING KICKBACKS)
Procurement fraud usually involves inflated invoices or “fictitious” vendors.
- The Three-Way Match: Never pay an invoice unless you have matched the Purchase Order (PO), the Delivery Note (signed), and the Supplier Invoice.
- Vendor Master File Review: Review your vendor list annually. Look for suppliers with the same bank details or physical addresses as your employees.
- Dual Authorization: Implement a “Two-to-Sign” rule for all EFT payments above a certain threshold (e.g., R5,000).
- No “Cashing” of Checks: If you still use physical checks, strictly prohibit “Cash” as a payee and store blank checks in a dual-lock safe.