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NYC investigators: Nonprofit faked job placements
NYC investigators: City-hired nonprofit faked 1,400 job placements and possibly many more
By The Associated Press

NEW YORK (AP) ' An investigation has found that a nonprofit organization hired by New York City faked 1,400 job placements for city residents and possibly many more.

The city Department of Investigation found that officials at Seedco's local Workforce1 centers worked together to create fake reports for the city. Sometimes they claimed credit for placing people in jobs they'd lost before seeking help.

Internal complaints led to an audit in April that didn't uncover much of the wrongdoing. Officials from the city's Department of Small Business Services say they didn't learn of the depth of the allegations until they surfaced in an August New York Times column, and have since moved to end contracts with the organization.

President and CEO Barbara Dwyer Gunn says Seedco has removed staff and made changes.

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