• Report: #841686

Complaint Review: 4 C's Paterson New Jersey

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  • Submitted: Sun, February 19, 2012
  • Updated: Thu, October 11, 2012

  • Reported By: Stewart — venice California USA
4 C's Paterson New Jersey
2 Market St Ste 300, Paterson, NJ 07501 Wayne Township, New Jersey United States of America

4 C's Paterson New Jersey Maryann (Sudovar) Mirko $700,000 spent on disallowed items including $250,000 for a retirement nest egg for its former executive director Wayne Township, New Jersey

*Author of original report: 'Following The Money Still'

*Author of original report: NJ.COM EDITORIAL OPINION

*Author of original report: Is Maryann Mirko Morally Fit (To Be A Medical Proxy)

*Author of original report: Corruption Watch Maryann Mirko-4C's

*Author of original report: Passaic County non-profit agency paid Roy Mirko son of CEO $2 million

*Author of original report: CONTACT: Nicole Brossoie, DHS Office of Communications (609) 292-3703

*Author of original report: Internal Revenue Service Form 990

*Author of original report: RICO ACT

*General Comment: Good for DHS State orders child agency to return $679,000

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http://www.northjersey.com/news/0217_State_orders_child_agency_to_return_679000.html?page=all

State orders child agency to return $679,000

FRIDAY FEBRUARY 17, 2012, 11:48 PM
BY HARVY LIPMAN
STAFF WRITER
THE RECORD

The state wants a Paterson non-profit that oversees government-funded child care to repay nearly $700,000 spent on disallowed items including $250,000 for a retirement nest egg for its former executive director.

The state Department of Human Services says 4Cs of Passaic County wasnt permitted to use state funds for Mary Ann Mirkos deferred compensation account. As of late 2009, that account was valued at more than $850,000.

The departments review was limited to 2008 and 2009, but officials said they are continuing to review other years of state contracts with the non-profit. [continued below]....
.....

The auditor will go through contracts as far back as necessary to reclaim any disallowed costs, said DHS spokeswoman Nicole Brossoie.

On Jan. 24, state auditors sent 4Cs a letter seeking $679,416 in reimbursements for costs they allege were claimed improperly in 2008 and 2009. In addition to Mirkos retirement payments, DHS found that the non-profit had charged the state to pay for long-term-care insurance for the spouse of one employee and also had claimed travel expenses that shouldnt have been covered under the contract.

Brossoie said she didnt know which employees expenses are involved.

As the child-care resource and referral program for Passaic County, 4Cs oversees state and federal child-care voucher programs, runs the countys referral service for parents seeking child care, maintains the waiting list of families eligible to receive vouchers, runs a training school for child-care workers and provides a range of other child-care-related services.
Formerly known as the North Jersey Community Coordinated Child Care Agency, 4Cs had an operating budget in 2010 of $34.5 million. According to its audited financial statement, all but a few thousand dollars of its revenue comes from state and federal funds.

Until her retirement at the end of January, Mirko was one of the highest-paid non-profit executives in North Jersey. According to the organizations fiscal year 2010 tax return, her total compensation package came to $359,772 including fringe benefits and deferred compensation toward her retirement.

Board Chairman Keith Darragh said Friday that he wasnt aware the state had demanded the repayments.

We have an upcoming board meeting next week, and I will make sure we get the proper information then, Darragh said. I really have no comment until then.

No one answered the phone number listed for Mirko.

This is not the first time her compensation package has been a topic for state regulators. When the Christie administration issued salary guidelines for social services agencies in April 2010, she was one of only a handful of non-profit executives in Bergen and Passaic whose pay was high enough to be affected, even though the cap did not apply to her deferred compensation and other benefits.

She declined at that time to discuss in detail the impact the salary cap would have on the agency, other than to say it would require pay cuts for the non-profits top two executives.

The non-profits tax filings show that Mirkos annual compensation packages ranged from $281,721 to $422,529 between 2003 and 2010; during that time, almost all of 4Cs funding came from the government.

The Paterson group made deferred-compensation payments into her account each of those years. The value of her retirement plan varied over time because it was invested in the stock market and other holdings. But according to 4Cs 2009 audit, it was worth $856,252 as of Sept. 30, 2009.

Until 2008, 4Cs also ran its own child-care centers. But when DHS put out a request for proposals from organizations seeking to become resource and referral programs, it said groups that also provided child care werent eligible.

At that point, 4Cs was created as a new non-profit and split off from the North Jersey Community Coordinated Child Care Agency, which continues to operate two day-care centers in Paterson.

This report was posted on Ripoff Report on 02/19/2012 09:25 AM and is a permanent record located here: http://www.ripoffreport.com/r/4-Cs-Paterson-New-Jersey/Wayne-Township-New-Jersey-07470/4-Cs-Paterson-New-Jersey-Maryann-Sudovar-Mirko-700000-spent-on-disallowed-items-inc-841686. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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#1 Author of original report

'Following The Money Still'

AUTHOR: Stewart - ()

Mbc of New Jersey, LLC has a location in Wayne, NJ. Active officers include Mary Ann Mirko and William R. Mirko. Mbc of New Jersey, LLC filed as a Foreign Limited Liability on Thursday, February 23, 2012 in the state of New Jersey and is currently active.

Filings: Foreign Limited Liability (FL - Active)

State of Record: FL

State Reference ID: M12000001685

File Date: Thursday, February 23, 2012

Active: True

Filing Type: Foreign Limited Liability

Source:  Florida Department of State last refreshed 12/14/2012

Mbc of New Jersey, LLC has a location in Wayne, NJ. Active officers include Mary Ann Mirko and William R. Mirko. Mbc of New Jersey, LLC filed as a Foreign Limited Liability on Thursday, February 23, 2012 in the state of New Jersey and is currently active.

http://www.corporationwiki.com/New-Jersey/Wayne/mbc-of-new-jersey-llc/101225599.aspx
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#2 Author of original report

NJ.COM EDITORIAL OPINION

AUTHOR: Stewart - (USA)


Herald News: A non-profit falls down on its mission
Thursday, October 11, 2012
Herald News

THOUSANDS OF residents in Passaic County depend on the work of non-profits, many of them agencies that perform miracles every day in helping lower-income families survive one crisis after another one week to the next. Now we find that one non-profit that has played such a vital rule in shoring up the so-called safety net has also been less than responsible with government money it has been responsible for disbursing.
As Staff Writer Harvy Lipman reports, the 4Cs of Passaic County, which oversees day care in Passaic County, will lose $900,000 in state funding in order to make up for a retirement nest egg given to its former executive director and other "disallowed" uses of its financial support from Trenton. The state Department of Human Services, following an audit of the agency, says 4Cs wasn't permitted to use state funds for former director Mary Ann Mirko's deferred compensation account.
Incredibly, the child-care oversight organization paid Mirko, its longtime leader, nearly $1.4 million for both her retirement fund and other fringe benefits from 2003 through 2010. Until her retirement in January, Mirko was one of the highest-paid non-profit executives in North Jersey.
Turns out nothing here was done illegally, but it's about as wrong as you can get. Sadly, it is one more case in Passaic County where an agency or non-profit meant to do good, to help people in need, has instead compensated its high-ranking employees as if they worked for a multinational investment bank.
What, it is fair to ask, were board members who were supposed to be watching over the agency's finances doing while all this taxpayer money was flying out the window, not to help people in need, but to pad an employee's retirement package?
Keith Darragh, the current chairman of the 4Cs board who arrived after the non-profit approved the last extension of Mirko's contract containing the retirement payments, says 4Cs will have "to put this behind us and move forward as an agency."
Unfortunately, 4Cs now not only has a money problem, it has a public relations problem. Darragh told The Record the 4Cs board is developing a fundraising plan to replace the lost funds. A reasonable person might ask why anyone should contribute to a non-profit that has shown itself to be so self-serving in the past. If Darragh and the board really want to move forward, it will ask for the resignations of any and all who approved the Mirko package.
This unsavory business involving 4Cs is reminiscent of the recent fallout involving the One-Stop Career Center in Passaic County, also heavily publicly funded, where a state audit revealed that two administrators had been getting overtime for several years despite being ineligible as salaried employees. Perhaps it should be stated more clearly: Non-profits that receive state funding are not entitled to just spend money in freewheeling fashion.
Sadly, these are programs on which a large swath of the region's population depend. Formerly known as the North Jersey Community Coordinated Child Care Agency, 4Cs had an operating budget in 2010 of $34.5 million. According to its audited financial statement, all but a few thousand dollars of its revenue comes from state and federal funds.
As The Record reports, 4Cs provides an invaluable service as the child-care resource and referral program for Passaic County. Among other programs, it oversees state and federal child-care voucher programs and runs the county's referral service for parents seeking child care.
Now, thanks to this outrageous compensation for Mirko, as well as other misappropriations, 4Cs will see its state outlay drastically cut by nearly $300,000 in each of the next three fiscal quarters. The worst part is that the penalty will not hit those who behaved so irresponsibly, but those who need the agency's services the most.
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#3 Author of original report

Is Maryann Mirko Morally Fit (To Be A Medical Proxy)

AUTHOR: Stewart - (USA)

Is Maryann Mirko Morally Fit (Medical Proxy)

Maryann Mirko covertly obtained a medical proxy over her 102 year old mother which was witnessed by her daughter, Maryann Mirko Lazio and daughter in law Dawn Gormley Mirko.

The covert proxy was affirmed by Superior Court Judge Margaret Mary McVeigh during a hearing on the well being of the aged woman.

Maryann Mirko was the CEO of 4C's Paterson formerly known as the North Jersey Community Coordinated Child Care Agency a 501 C3 non profit charity, and has come under the scutiny of the department of Human Services for nearly one million dollars of disallowed budget disbursments.

This matter has been referred by Governor Christie to the Attorney Generals Office for active investigation under # 201202840.

Given the circumstances of the on going criminal investigation launched as a result of the DHS audit and disallowed monies, the moral question arises as to the fitness and fidelity Maryann Mirko to continue to be the designated medical proxy as affirmed by Judge McVeigh? Especially in view of the fact that the aged womans estate of nearly one million dollars has been exhausted since the filing of the proxy and its affirmation by Judge McVeigh.

If you know or think you know of any other incidents of possible illegal activities by Maryann Mirko, for the well being and safety of a defenseless 102 year old woman you are encouraged to contact the Attorney General @ 609 984 6500.

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#4 Author of original report

Corruption Watch Maryann Mirko-4C's

AUTHOR: Stewart - (USA)

Corruption Watch Maryann Mirko-4C's (Wayne-Paterson-Trenton)

The State of New Jersey Attorney General's Office of Criminal Justice is reportedly conducting an active corruption investigation @ 4C's Paterson, formerly known as the North Jersey Coordinated Child Care Agency, a state funded 501 C3 tax exempt charity and Maryann Mirko the former CEO there.

At issue are the identified millions of dollars in monies paid to the CEO (Maryann Mirko) of the former North Jersey Coordinated Child Care Agency, including a nearly one million dollar nest egg she garnered and other perks that the state Dept of Human Services had disallowed earlier this year just as Mirko was about to retire.

Mirko was identified as one of northern New Jersey's highest paid 'non profit' CEO's, at the time when Governor Chritie imposed a salary cap on 501 C3 tax exempt non-profit CEO's who do business with the state.

Mirkos husband Bill Mirko, was is also reported to have been the beneficiary of many thousands of dollars of personal health care insurance paid for by tax payer money at 4C's which was also disallowed by DHS and subject to claw back by the state.

Mirko's many grandchildren have also attended and benefited from the 4C's operated day care center including lunches.

Mirko's neice Stephanie Loibel was also a paid employee there @ 4C's.

4C's was also disallowed thousands of dollars for Mirko's travel expenses and that of a travel assistant also discovered to have been paid for by tax payers during in the audit.

During the periods prior to this investigation the Mirko's have also amassed a handfull of income generating condominiums at South Carolina's Myrtle Beach Resort and they are also known for their numerous extended luxurious euro vactions to France and Italy. The Mirkos also own a multi story home in Packanack Lake Club area of Wayne NJ 07470.

Roy Mirko, the son of the CEO of 4C's the 501 C-3 tax exempt charity has also been identified as having been awarded some 2 million dollars in construction contracts at 4C's over nearly a decade wherein his company, Lakeside Carpentry located in Wayne NJ, consistently turned in the lowest bids. Roy Mirko according to public real estate records has just purchased a new home.

Charlie Lazio, ( a union electrician) and Mirko's son in law husband of Mirko's daughter Maryann Lazio, has also been awarded contracts for services at 4C's a 501 C3 tax exmept non profit.

Maryann Mirko has also been named as a defendant in another matter heard, and appeared, before Superior Court Judge Mary Margaret McVeigh of the Paterson Chancery Division over Mirko's covertly obtained medical proxy over an aged mother wherein Mirko's daughter and daughter in law Dawn (Gormley) Mirko signed the secret proxy as witnesses wherein the court found a covertly obtained proxy does not offend the moral concience of the court.

The aged mothers home has recently been sold.

While an active investigation into whether or not any of the named and associated individuals identified in this far reaching investigation of the financial goings on at 4C's have actually committed any high crimes or midemeanors, all individuals are presumed innocent until proven guilty in a court of law.

If you know, or think that you know, of any potential corruption crimes involving tax payer monies allocated to 4C's by these named individuals or anyone else there, you are encouraged to contact the Attorney Generals Office Department of Law and Public Safety Division of Criminal Justice at 609 984 6500 attention Robert E. McGrath, Lieutenant Records and Identification RE # 201202840.
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#5 Author of original report

Passaic County non-profit agency paid Roy Mirko son of CEO $2 million

AUTHOR: Stewart - (USA)

Passaic County non-profit agency paid son of CEO $2 million, records show

Saturday, February 25, 2012    Last updated: Sunday February 26, 2012, 8:53 AM
The Record

A local non-profit that oversees taxpayer-funded child care paid nearly $2 million over nine years to a construction company owned by the son of its recently retired CEO, federal tax records show.

4Cs of Passaic County has drawn the scrutiny of state officials for spending on disallowed items, such as the retirement nest egg of the chief executive officer, Mary Ann Mirko. Officials now say they will be seeking $827,643 in reimbursements under two contracts the non-profit had with the state and are continuing to audit earlier contracts.

Contracts with son's firm.

The taxpayer-funded 4Cs of Passaic County paid $1.9 million to a company owned by the son of its recently retired CEO from 2001 through 2009. 4Cs, formerly the North Jersey Community Coordinated Child Care Agency, hired Lakeside Carpentry of Wayne for various construction jobs. The company is owned by Roy Mirko, the son of former 4Cs CEO Mary Ann Mirko.





















































































YearPaid to Lakeside
2009$389,337*
2008$262,704
2007$124,505
20060
2005$503,759
2004$376,360
20030
2002$161,139
2001$103,839

Source: Federal tax returns

* 4Cs and the North Jersey Community Coordinated Child Care Agency split into two non-profits in 2009. Dollar figure represents total paid to Lakeside Carpentry by both organizations.

Included among the targeted items are long-term-care insurance for Mirkos husband and the spouse of the current executive director, Antonio DiNizo.

Representatives of the group defended the spending and said they hope to get a chance to make that point with state officials. Mirko, who retired as CEO at the end of January, said the payments to her sons company were legitimate.

We put out all of our contracts for bids and we always made sure we got three bids, Mirko said. The lowest bid was my sons.

According to the organizations federal tax returns, 4Cs and its predecessor the North Jersey Community Coordinated Child Care Agency hired Lakeside Carpentry in Wayne as a contractor in all but two years between 2001 and 2009. Lakeside is owned by Roy Mirko.

Mary Ann Mirko said that among the work done by her sons company were renovations to a Paterson building in 2008 where the non-profit was relocating a child-care center. 2008 was when we moved, and we had to do something about the building, she said. We bid out everything over a certain amount.

Federal law requires that non-profits disclose on their tax returns any time they pay more than $1,000 to a member of any executives family or any business owned by a family member. 4Cs reported its dealings with Lakeside but did not disclose the relationship until it filed the form for 2006. It first hired Lakeside as a contractor in 2001.

A spokeswoman for the state Department of Human Services said the payments to Lakeside were not included in the reimbursements sought by the state. The hiring of a company controlled by executives family members would be a subject for review under a new conflict-of-interest clause added to state contracts in October 2009, Nicole Brossoie said. But because Lakeside hasnt been paid by 4Cs since then, the state does not believe that any action will be taken with regard to these [earlier] payments, she said.

More 'disallowed' expenses

Non-profits that do work for the state have come under increased scrutiny by the Christie administration. In April 2010, it issued salary guidelines for social-services agencies with state contracts. Mirko, whose total compensation that year topped $350,000, was one of a handful of non-profit executives in Bergen and Passaic whose pay was high enough to be affected.

And benefits paid to Mary Ann Mirko are at the heart of DHS demand that 4Cs pay back $827,000 of the approximately $70 million it received from state contracts in 2008 and 2011.

On Jan. 24 the state sent 4Cs a letter seeking $148,227 from the 2011 contract $125,000 of that for money it paid into Mirkos retirement fund and $11,827 spent on long-term-care insurance for Mirkos husband and DiNizos wife. The state also wants 4Cs to repay $11,400 in various employees travel expenses.

Brossoie said that the state has also drafted a second demand letter it plans to send to 4Cs seeking $679,416 from its 2008 contract. That includes another $125,000 paid into Mirkos retirement account and a range of other disallowed expenses.

In addition, DHS auditors are going back through other contracts with 4Cs to determine if it should seek more reimbursements. The non-profit has been paying $125,000 annually into Mirkos retirement since 2001.

As of September 2009, Mirkos retirement account was valued at $856,252, according to a 4Cs audited financial statement.

Mirko said the non-profits board decided to begin the payments then because I had worked for 25 years without a pension. They felt after 25 years they should do something for me.

She added that she had earned that benefit.

I put in 35 years there and I never did anything wrong, Mirko said. There is nothing going on that is illegal or immoral. After 35 years, thats not a lot of money. I did devote 35 years of my life to that agency, where I helped thousands of people.

4Cs is the state child-care resource and referral program for Passaic County. It oversees state and federal child-care voucher programs, runs the countys referral service for parents seeking child care, maintains the waiting list of families eligible to receive vouchers, runs a training school for child-care workers and provides a range of other child-care-related services.

It had an operating budget in 2010 of $34.5 million. According to its audited financial statement, all but a few thousand dollars of its revenue comes from state and federal funds.

Keith Darragh, chairman of the 4Cs board, said the non-profit is in the process of getting back to the state and trying to understand the basis behind its reimbursement demand.

Darragh, who joined the board two years ago, said 4Cs always provides the state with a full budget when its state contracts are signed.

The benefits and salaries of our employees, that detail was always disclosed, he said. By no means were we trying to hide things.

The board chairman emphasized that 4Cs has a good working relationship with the state, and added that he hoped once the organization finds out more details about state auditors concerns, it will be able to show that the expenses in question are legitimate.

Brossoie said state contractors frequently are able to provide additional documentation to justify costs that have been challenged by auditors.

What the auditors identify as unallowable costs can sometimes change through discussions between the state and the agency, she said.

As for the 4Cs payments to Lakeside Carpentry, Darragh noted that they predated his tenure on the board and he had not been aware of them.

Will it be something I inquire about? Yes, Darragh said.

Email: lipman@northjersey.com

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#6 Author of original report

CONTACT: Nicole Brossoie, DHS Office of Communications (609) 292-3703

AUTHOR: Stewart - (USA)

If you know, or think you may know of any other current, past, or ongoing disallowed payouts by this individual or 4C's, as well as the former Coordinated Child Care Center of Paterson NJ, you may be entiled to a whistle blowers award by reporting your concerns to DHS NJ.

CONTACT: Nicole Brossoie, DHS Office of Communications (609) 292-3703

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#7 Author of original report

Internal Revenue Service Form 990

AUTHOR: Stewart - (USA)

http://www2.guidestar.org/FinDocuments/2010/270/379/2010-270379818-07738347-9.pdf
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#8 Author of original report

RICO ACT

AUTHOR: Stewart - (USA)

Under RICO, a person who is a member of an enterprise that has committed any two of 35 crimes27 federal crimes and 8 state crimeswithin a 10-year period can be charged with racketeering. Those found guilty of racketeering can be fined up to $25,000 and sentenced to 20 years in prison per racketeering count. In addition, the racketeer must forfeit all ill-gotten gains and interest in any business gained through a pattern of "racketeering activity." RICO also permits a private individual harmed by the actions of such an enterprise to file a civil suit; if successful, the individual can collect treble damages.

When the U.S. Attorney decides to indict someone under RICO, he or she has the option of seeking a pre-trial restraining order or injunction to temporarily seize a defendant's assets and prevent the transfer of potentially forfeitable property, as well as require the defendant to put up a performance bond. This provision was placed in the law because the owners of Mafia-related shell corporations often absconded with the assets. An injunction and/or performance bond ensures that there is something to seize in the event of a guilty verdict.
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#9 General Comment

Good for DHS State orders child agency to return $679,000

AUTHOR: Choo Choo - (United States of America)

It is about time that the tables started to trun on this woman. She does this to her own mother and doies not surprise me she does this to kids. I wonder what Judge McVeigh thinks about her now? Will Judge McVeigh do the right thing with this woman? I am surprised she does not have a guardianship non-profit racket in the midst. She has treated her very own mother to suffer from not allowing her youngest daughter to see her for years.

Good for DHS. Now you need to come and take a look at these non-profit government programs that counties are thriving to grasp. Chemung, Tompkins, Olean, Nassua, Saratoga and Broome counties.
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