State probes Folts Home financial irregularities
Posted in the Herkimer Forum
#1 Apr 11, 2013
State probing Folts Homes’ finances
By AMANDA FRIES
Posted Apr 10, 2013 @ 05:49 PM
HERKIMER — The state Attorney General’s Office is investigating “financial irregularities” at Folts Homes.
The probe began late last year, the office’s Deputy Press Secretary Michelle Hook said. Hook wouldn’t comment further.
Folts Homes Administrator Fortunato Scerbo III said in an email that the facility is aware of the investigation and is cooperating fully. The state Department of Health was notified as well, he said.
“We understand that Folts Home is not a target of the investigation,” he wrote.
Health department officials said they couldn’t comment.
Last summer, the senior retirement community announced the Aug. 31 closure of the child care center there due to “economic conditions affecting New York state.”
Then in October, Chief Executive Officer Ralph Reid and Chief Operating Officer Ernest Orts resigned due to “financial considerations.”
The facility also failed to make any of its payments in lieu of taxes (PILOT) last year and owes a total of $40,000 to the town, village, Herkimer Central School District and Herkimer County, officials said. The payment for the first quarter of this year also hasn’t been received.
Town Supervisor Dominic Frank said the parties have been meeting to come to a resolution regarding the PILOT.
The agreement obtained by the O-D said Folts Homes would make quarterly payments of $10,000 for a total of $40,000 annually beginning July 1, 1999, and “annually thereafter.”
Herkimer Interim Superintendent Ted Kawryga and village Mayor Mark Ainsworth said the entities were asked last month to reduce the PILOT to $20,000 a year and forgive the back payments from 2012.
“The group consensus is we would not forgive last year’s PILOT agreement, and we would not reduce the PILOT payment in half,” Kawryga said.“As far as I know, the PILOT is still in place.”
A letter was sent to Folts Homes, Ainsworth said, and he hasn’t heard anything since.
Ainsworth said he didn’t want to change the agreement because other recipients of similar agreements may request changes.
The village’s share of the funds is about $17,000 a year, with the school district receiving roughly the same, Ainsworth said. The town and county receive the remainder.
Frank said he hadn’t heard about the state investigation.
“I don’t know what to say,” he said.“I feel for Folts Homes. They are a major service provider and major employer in our area, and I only hope for the best.”
Current employment figures could not be learned Wednesday.
#2 Feb 4, 2015
Are the ceo and the coo that resigned working someplace else now? I think they should have some responsibility in this too. of course we know that the people at the top never have to pay for their mistakes. The shit always rolls downhill to some poor soul that can't afford to lose their job. I hope that ceo and coo aren't working someplace else...they can walk away scott free and go do the same thing someplace else.
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