Category Archives: Horror.Stories

Manlius nursing home residents go without food, medicine; NYC owner fined

Source: James T. Mulder, syracuse.com, July 10, 2018

A Manlius nursing home without enough staff to clean, feed and toilet residents has been fined $22,000 by the state. An inspection of the Onondaga Center for Rehabilitation and Nursing conducted in February found the facility was so short-staffed some residents did not get insulin and other medications on time or at all. The 80-bed home, formerly known as the Crossings, was bought last year by Centers Health Care, a New York City-based for-profit chain that owns 53 nursing homes in New York, New Jersey and Rhode Island. The state Health Department recently posted information about the fine on its website. … The report cited the facility for 24 deficiencies, at least three of which resulted in harm to residents. Many of the problems were repeat deficiencies. … Three certified nurse aides during the day and one to two aides at night typically cared for 35 to 40 residents. … Some residents did not get lunch until after 1:30 p.m. because there were not enough staff to deliver meal trays. … One resident had to be hospitalized after becoming dehydrated because there was no registered nurse on duty to provide fluid intravenously. … Seven residents did not get proper care to heal and prevent bed sores.

… The nursing home made a profit of $1.8 million in the first eight months of 2017 before it was acquired by Centers Health Care, according to SNFdata, a company that reports nursing home financial data. Financial results since Centers Health Care took over were not available. … The state recently fined another one of the chain’s nursing homes in Queensbury near Lake George $10,000 after a resident died in a nursing home van accident last year. …

Major state contractor fined $500K for violating SEC rules

Source: Steve Miller, Texas Monitor, July 12, 2018

A key state contractor has been fined $500,000 by the Securities and Exchange Commission for alleged political contributions to candidates in the governor and attorney generals’ races in 2013 and 2014. Employees of Houston-based EnCap violated rules that govern donations from financial firms to candidates who, if elected, would play a role in their selection to invest public money. According to a cease-and-desist order from the SEC, the contributions include $25,000 to a gubernatorial candidate in September 2013 and a total of $60,000 to an attorney general candidate. The offending contributions were made between September 2013 and May 2014, according to the SEC. EnCap was also named for violating rules in Indiana and Wisconsin. … The SEC order contends that several state retirement systems, including the University of Texas, the Teachers Retirement System, and the Texas County and District Retirement System, collectively invested $2.27 billion in funds advised by EnCap. …

CPS kills $60M deal at the last minute over sexual harassment of janitors

Source: Lauren FitzPatrick, Chicago Sun-Times, July 6, 2018

Just before a scheduled vote, Chicago Public Schools officials withdrew plans to approve a $60.6 million contract for school cleaning and other facilities management work because the company set to be given the work has a poor history of protecting its janitors from sexual harassment, the Chicago Sun-Times has learned. GCA Educational Services Central States Inc. was being recommended for the lucrative, three-year deal to manage facilities services at 34 Chicago schools, including cleaning, which has become an issue amid reports of filthy schools. But at the same June 27 meeting at which the Chicago Board of Education was set to award the contract, Arnie Rivera, CPS’s chief operating officer, announced he was pulling the recommendation to hire GCA to oversee the work at a group of South Side schools where some of the worst problems were found during inspections for cleanliness.

… But the Sun-Times confirmed it was because GCA’s parent company, ABM Industries, Inc., has had a series of problems keeping its janitors safe on the job. … ABM was featured in the 2015 PBS “Frontline” documentary “Rape on the Night Shift” about women who were sexually harassed and assaulted while working as night janitors in California. Since 2000, ABM has been sued three times by the federal Equal Employment Opportunity Commission over such claims. While under a three-year consent decree that a judge signed in one of those cases, the company was sued again by three janitors in California who accused ABM of failing to do enough to keep them from being sexually harassed and assaulted at work. In the spring of 2017, more female janitors in California complained to the company that supervisors sexually harassed them, then sought help from the EEOC, according to the documentary. And GCA Service Group — which ABM bought in 2017 — had been sued in 2012 by a school janitor in Tennessee who said she was fired after reporting incidents to supervisors of sexual harassment and assault by a coworker. …

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1 in 4 Chicago schools fails in new inspections spurred by dirty schools reports
Source: Lauren FitzPatrick, Chicago Sun-Times, July 3, 2018

Chicago Public Schools officials say their efforts to improve school cleanliness are working, but data they released late Tuesday showed that one in four schools still failed “blitz” inspections despite heightened awareness prompted by Chicago Sun-Times reports. Just ahead of the July 4 holiday, CPS released school-by-school summary results of inspections by central office staffers and employees of Aramark and SodexoMAGIC, which have major contracts to clean and oversee facilities services in the school system. …

CPS fails to count schools in janitorial contract, costing millions
Source: Lauren FitzPatrick, Chicago Sun-Times, April 12, 2018

It’s the latest wrinkle in a controversial contract to privatize custodial management with Aramark, which has faced sharp criticism for failing to keep schools clean. Aramark was supposed to save CPS $18 million this year. But the district understated the square footage that would need cleaning in its request for proposals, spokesman Bill McCaffrey said, at a cost of $7 million over the projected $64 million CPS expected to spend this year. … Chief Administrative Officer Tim Cawley sold the $260 million Aramark deal to the Board of Education and the public by saying it would free up principals from managing custodians, result in cleaner schools and save the cash-strapped district millions of dollars. Some of the savings was to come from layoffs of hundreds of custodians. But the district was on the hook for some $20 million more to Aramark than it promised, essentially wiping out the $18 million Cawley said the district would save in its first of three years, as first reported by WBEZ. …

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State, federal lawsuits pin defective DC Metro concrete on contractor

Source: Kim Slowey, Construction Dive, July 13, 2018

The U.S. Department of Justice and the Commonwealth of Virginia have filed suit against Universal Concrete Products Corp., the manufacturer of concrete panels for the Washington, D.C., Metro’s $5.8 billion Silver Line project, alleging violations of the False Claims Act and Virginia Fraud Against Taxpayers Act, as well as unjust enrichment and payment by mistake, according to court documents. Universal was working on the project under a $6 million purchase order contract with design-builder Capital Rail Constructors (Clark Construction Group and Kiewit Infrastructure South). In the July 9 action against Universal and co-defendants Donald Faust Jr., company president and co-owner, and Andrew Nolan, former quality control manager, the Justice Department and Virginia authorities claim that Universal knowingly provided panels that did not have the required air content for use on the Silver Line project and falsified documents so that it would appear the panels met the project specifications. …

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Contractor botches Silver Line concrete
Source: Associated Press, April 25, 2018

Concrete panels installed in the $2.6 billion project extending the D.C. region’s Metrorail Silver Line to Dulles International Airport are not as durable as they should be. Thousands of areas along the extension will need to be dealt with. And some of the concrete will need to be completely thrown out, despite being already installed. Charles Stark, director of the Silver Line project, said the concrete is supposed to last 100 years but was not mixed properly by a subcontractor. …

Health provider in scandals loses first 3 state contracts

Source: Doug Thompson, Arkansas Democrat-Gazette, July 7, 2018

The state began closing down the first three of its 16 contracts with Preferred Family Healthcare on Friday, after a year and a half of scandals that include convictions of four former lawmakers on corruption charges. Preferred Family is a nonprofit behavioral health and substance abuse treatment company. It has 47 locations in Arkansas. The Springfield, Mo., company has $28 million in contracts with the state to provide services ranging from therapy and counseling for foster children to court-ordered drug and alcohol addiction treatment and professional consulting to the state Department of Human Services. In addition, the company received more than $33 million a year through the state Medicaid program. Preferred Family operates in five states. … A U.S. Department of Justice investigation has obtained three guilty pleas and one jury conviction against former Arkansas lawmakers in a multimillion-dollar corruption scheme that started at least as early as 2010. … The state was assured by Preferred Family it had dismissed the company executives involved since the first guilty plea Jan. 4, 2017. Then former Preferred Family executive Robin Raveendran was charged last week, accused of filing $2.3 million in improper Medicaid claims for mental health services. Gov. Asa Hutchinson and the state’s Office of Medicaid Inspector General announced the state would cancel contracts with the company and suspend Medicaid payments to it. …

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Troubled Missouri nonprofit settles wage lawsuit amid federal probe of bribery, kickback scheme
Source: Wesley Brown, Talk Business & Politics, July 1, 2018

During the period when a Missouri healthcare nonprofit was doling out millions of dollars in bribes and kickbacks to Arkansas lawmakers, public officials and its own well-paid executive team, the troubled healthcare group was fleecing hundreds of lowly paid hourly workers out of overtime pay, according to allegations in a recent federal lawsuit. In early April, Springfield, Mo.-based Preferred Family Healthcare (PFH) agreed upon a tentative settlement with former employee Frances Smith over allegations that PFH and its handful of Arkansas-based affiliates failed to pay the former healthcare worker and other agency employees overtime compensation for working over 40 hours per week, according to pleadings with the U.S. District Court for the Eastern District of Arkansas. …

Preferred Care settles for $540,000 in whistleblower upcoding case

Source: Elizabeth Leis Newman, McKnight’s, July 6, 2018

Nursing home chain Preferred Care agreed to settle False Claims Act charges for $540,000, the Department of Justice has announced. Federal officials accused the company of upcoding Medicare beneficiaries between July 2012 and October 2017, and of providing “worthless services” at Kentucky’s Stanton Nursing and Rehabilitation Center for three years. … Preferred Care, which owns or operates 100 skilled nursing facilities, declared bankruptcy last November. A bankruptcy court approved the settlement on June 26. As part of the settlement, the company does not have to admit to liability. …

Kentucky Reviewing State Contract After Bribery Trial 

Source: Adam Beam, Associated Press, June 25, 2018 
 
An Illinois-based company’s million-dollar contract with Kentucky could be in trouble after one of its executives testified it paid a state lobbyist on a “success basis” during a federal bribery trial earlier this month.  Kentucky pays Cannon Cochran Management Services Inc. about $1 million a year to manage the state’s workers compensation claims. The company won the contract in 2005 under former Republican Gov. Ernie Fletcher and has kept it ever since.  State officials recently renewed the contract for another two years. But that was before Jerry Armatis, CCMSI’s executive vice president for sales, testified during James Sullivan’s federal bribery trial last week in Lexington. Armatis said how much money they paid Sullivan’s consulting firm depended on whether the company won a state contract… But state law bans lobbyists from being paid in this way….

Hell on Wheels

Source: Kiera Feldman, ProPublica, June 4, 2018
 
Even in the bruising, often chaotic world of New York’s nighttime trash collection, Sanitation Salvage cuts a distinctively brutish profile. Its role in Diallo’s death — and, in April, the death of an elderly Bronx man run down while crossing the street with a cane — has set off a firestorm for the company as well as the city agency that oversees the commercial trash industry.  An investigation by Voice of America and ProPublica, drawing on thousands of pages of public documents and interviews with more than a dozen current and former workers, depicts a workplace environment in which concerns about safety, as well as workers’ rights and compensation, are flouted despite years of complaints from workers to regulators.  Records show that more than three-quarters of Sanitation Salvage trucks have been ordered off the road after federal safety checks. Yet the company has paid lobbyists to fight local legislation that backers say would compel haulers to improve on working conditions and safety. …

Young Boy With Autism Abused By His School Bus Aide And Driver

Source: Dave Savini, CBS Chicago, May 11, 2018

Nicky O’Toole has autism and struggles to communicate. For months, when he was just nine years old, he was hit and threatened by his school bus aide and driver. … O’Toole said as she struggled to figure out why her son’s behavior was changing, she initially did not suspect the First Student bus employees. … She says months of disturbing videos are in First Student’s possession. … There are training questions too. First Student’s contract with the District says they provide, “..a well-developed special-needs training program.” The bus aide says otherwise, according to O’Toole’s team of attorneys, Michael Krzak of Krzak and Rundio Law and Robert Clifford from Clifford Law Offices.

Parking meter deal keeps getting worse for city as meter revenues rise

Source: Fran Spielman, Chicago Sun Times, May 14, 2018

Chicago’s parking meter system raked in $134.2 million last year, putting private investors on pace to recoup their entire $1.16 billion investment by 2021 with 62 years to go in the lease, the latest annual audit shows. Four underground, city-owned parking garages took in $34 million in 2017, while the privatized Chicago Skyway generated $99.9 million in cash, separate audits of those assets show. Not a penny of those revenues, once a mainstay for city government, went to ease the avalanche of tax increases imposed by Mayor Rahm Emanuel to solve the city’s $36 billion pension crisis. That’s because all three of those assets were unloaded by former Mayor Richard M. Daley, who used the money to avoid raising property taxes while city employee pension funds sunk deeper in the hole. …

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Parking meters, garages took in $156M — but city won’t see a cent
Source: Mick Dumke and Chris Fusco, Chicago Sun-Times, February 13, 2017

Chicago’s parking-meter system took in $121.7 million last year, while four underground city-owned garages reaped another $34.7 million — with not a penny of that money going to the cash-strapped city government. Instead, the $156.3 million pot of parking cash went to private investors who control the meters and garages under deals cut by former Mayor Richard M. Daley and rubber-stamped by the City Council. … Chicago Parking Meters — formed by banking giant Morgan Stanley and other financial partners — paid the city $1.15 billion to manage the meter system and pocket the money fed into it for the next 75 years. The city took in $23.8 million from the meters in 2008, the last year before CPM took over the system. In the seven years since, the meter company has reported a total of $778.6 million in revenues. It’s on pace to make back what it paid the city by 2020, with more than 60 years of meter money still to come. … The garage agreement has also sent a stream of money into the coffers of private investors. … Over the nine years of the deal, the facilities have generated $292.6 million in revenue for their private operators. … Last week, the rights to the garages were sold to a group of foreign investors.

A Tale of Two P3s
Source: Yvette Shields, Bond Buyer, July 7, 2016

Chicago’s first mistake in its much-maligned parking meter lease was its choice of asset. That’s one conclusion of a report released Thursday by the Manhattan Institute for Policy Research that looks at public-private partnerships and compares the details of two deals – Chicago’s nearly $1.2 billion 75-year meter system lease and Indiana’s $3.9 billion 75-year lease of the Indiana Toll Road. The Indiana deal is held up as a model while the Chicago parking lease offers a roadmap of pitfalls to avoid. …

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