Champagne Appointed ComLinks Prosecutor

MALONE - The Saratoga County district attorney has been appointed to handle an investigation and possible prosecution of ComLinks' former chief executive officer, and the agency's current executive director and chief financial officer.

According to Franklin County District Attorney Derek P. Champagne, James A. Murphy III has been appointed by Franklin County Court to serve as special prosecutor in the matters of People v. Nancy Reich, People v. Brenda Mallette-Glennon and People v. Brian Cassini.

Charges have not yet been filed against Reich, Mallette-Glennon or Cassini.

Mr. Murphy, who is out of his office on vacation, was not available for comment Thursday.

Mr. Champagne said investigation into the actions of the three ComLinks administrators was recommended by state Comptroller Thomas R. DiNapoli after his office conducted an audit into the financial workings of the local community action agency. The Franklin County prosecutor said his office would not be handling the cases because it has worked with ComLinks' Domestic Violence Intervention program as part of his office's victim services.

The OSC audit accused Reich, who has parted ways with the agency, of using thousands of dollars of agency money to pay for golf club memberships, wine, vacations, gifts, flowers, massages, home appliances and other services and items for her personal use.

"Arriving the day before a conference in Syracuse, Reich had room service deliver six glasses of wine," the report says in one example. "The next day she said she could not attend (the conference) because she had the 'flu' but she ordered an eggs Benedict breakfast from room service, and charged it to ComLinks."

The report says Ms. Reich then passed fraudulent documents to OSC auditors, via the Mr. Cassini, in an attempt to cover up her actions.

"Ms. Reich was able to engage in inappropriate transactions because the ComLinks Board of Directors failed in its oversight responsibilities and because Chief Financial Officer (CFO), Ms. Brenda Mallette-Glennon, acquiesced to Ms. Reich's inappropriate management activities," the audit report states.

The OSC report also criticizes Mr. Cassini for "using his position to hire his wife and his son's former football coach," and using agency funds "to pay for certain expenses for him and his wife to remain in Florida for a mini vacation after he attended a work-related conference."

The report criticizes Ms. Mallette-Glennon for failing to fulfill her professional duties as a certified public accountant.

"While Ms. Reich was CEO, Ms. Mallette-Glennon did not act in good faith with diligence, care and skill," the audit report says. "Ms. Mallette-Glennon did not assert her authority as CFO, compromising her professional roles and responsibilities. Instead Ms. Mallette-Glennon did what Ms. Reich told her to do, regardless of whether it was ethical or appropriate."

The report says Ms. Mallette-Glennon allowed Ms. Reich an inappropriate level of control over payments made by the agency.

"In at least one instance, Ms. Reich did not allow Ms. Mallette-Glennon to authorize payment to a vendor because Ms. Reich was 'angry' with the vendor for personal reasons," the report says.

The report says Ms. Mallette-Glennon also failed to require Ms. Reich to provide supporting documentation for reimbursements, though agency policy requires such information.

OSC, in the audit report, also expresses concerns about Ms. Mallette-Glennon's performance after Ms. Reich left the agency.

"As CFO, Ms. Mallette-Glennon is responsible for monitoring staff to ensure they follow appropriate procurement practices," the report says. "Ms. Mallette-Glennon did not do this. For example, on December 3, 2009, ComLinks paid a food vendor $8,000 for goods they did not receive. When we questioned Ms. Mallette-Glennon about the purchase she could not explain why they paid this vendor and what product they received. This payment raised suspicion because the owner of the company who received the $8,000 is a relative of a ComLinks employee involved in the transaction."