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NEWS from the Office of the New York State Comptroller
Contact: Press Office 518-474-4015

DiNapoli Statement on Sentencing of Special Education Provider

December 19, 2014

“Today’s sentencing of Morton Kramer, the former executive director of IncludED Educational Services, shows that those who abuse the state’s special education system will be held accountable for their actions. I thank Manhattan District Attorney Cyrus Vance for prosecuting this case and making sure justice was done.

“Recent audits by my office have continued to find patterns of mismanagement and abuse in the preschool special education sector. I will continue my efforts to make sure tax dollars intended for students with special needs are spent as intended and not used to line the pockets of unscrupulous contractors.”

In May, Kramer admitted that the now-defunct IncludED, based in Cedarhurst, Nassau County, inappropriately charged New York City’s Department of Education (DoE) and other school districts for salaries paid to his sons and other relatives as discovered in an in-depth review by DiNapoli’s auditors and investigators.

As part of his sentence, Kramer was ordered to repay $418,000 paid to six of his relatives who performed little or no work for the special education programs over a three-year period. Kramer will also serve five years on probation.

DiNapoli’s office has identified fraud and improper use of taxpayer funds in a recent series of audits and investigations of special education providers, resulting in multiple criminal convictions and the recovery of more than $3 million.

For a copy of the original audit of IncludED Educational Services, visit: http://www.osc.state.ny.us/audits/allaudits/093012/10s59.pdf