- Associated Press - Thursday, August 7, 2014

ALBANY, N.Y. (AP) - New York’s inspector general says weak financial controls led to executive misconduct at Roosevelt Island Operating Corp., which included a kickback scheme.

Fernando Martinez, former vice president of operations, was sentenced to six months this year after pleading guilty to filing a false document.

In a report Thursday, Inspector General Catherine Leahy Scott says her office began investigating the public benefit corporation responsible for development and operations on the island in the East River in 2012 following a complaint that Martinez hired two relatives and contracted with others.

The report says he received $186,000 in kickbacks after hiring a friend’s janitorial service.

Scott says the former chief executive broke travel and expense rules while its former chief financial officer allowed it.

New managers agreed to tighten controls.


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