BY Heidi Evans
DAILY NEWS STAFF WRITER
Tuesday, February 19th 2008, 12:03 AM
The state attorney general and the Brooklyn district attorney have launched a joint probe into a nonprofit agency whose director allegedly squandered taxpayer dollars meant for disabled people on himself and his pals.
Seibert Phillips, executive director of the Evelyn Douglin Center for Serving People in Need (SPIN), paid his close personal friend, Carlos Ortiz, $250,000 for a no-show job over 2-1/2 years after the relationship soured, a report by the state Commission on Quality of Care and Advocacy for Persons with Disabilities charges.
He also spent thousands of dollars of the agency’s money on business trips, booze, luxury cars, flat-panel TVs and iPods for a dozen staff members.
Phillips, 44, also lied that he had college and social worker’s degrees, and appears to have spun a tangled web of “waste, fraud and abuse” as the center’s $300,000 a-year director, the report charges.
The report’s findings – obtained by the Daily News – were sent to the law enforcement agencies two weeks ago.
An employee first reported Seibert’s alleged corruption 18 months ago.
“We have opened an investigation in cooperation with the state AG’s office to determine what crimes may have been committed,” said Jerry Schmetterer, spokesman for Brooklyn District Attorney Charles Hynes.
“There appears to be serious criminal intent here,” a law enforcement source said. “Phillips and others could face prosecution down the road.”
Reached Monday, Phillips said, “I have no comment” and hung up on a reporter.
He denied the allegations last week.
The Evelyn Douglin Center – and its sister organization for children’s services – have headquarters at 241 37th St in Sunset Park, Brooklyn.
The tax-exempt centers serve more than 300 mentally retarded, autistic and disabled children and adults in a variety of group homes and day care centers.
Among the report’s other findings:
Three of SPIN’s directors did business with the agency, a conflict of interest in nonprofit laws. One board member, psychologist Merrith Hockmeyer, was paid more than $90,000 for services to Evelyn Douglin clients.
Phillips violated federal and state laws forbidding nonprofits from making campaign contributions. Records show Phillips has donated nearly $6,000 to Queens Assemblywoman Vivian Cook since 2002. Cook also received $1,550 in campaign contributions from the Evelyn Douglin Center.
The board of directors failed to “closely monitor” Phillips.
The board’s lawyer, Jack Kiley, could not be reached for comment.
Despite the revelations, Phillips and his board members were allowed to stay on. Phillips, who lives in Rockland County, is expected to leave at the end of this month.
He is being replaced by lawyer Charles Archer, his good friend and a longtime board member.
Attorney for the defense: Matthew D. Myers
Written by Heidi Evans for the New York Daily News – hevans@nydailynews.com