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School Is Target Of Probes

Agencies Exploring Abuse, Neglect Allegations, Consultant Deals

By JOSH KOVNER And COLIN POITRAS
Courant Staff Writers

November 30 2005

DURHAM -- Four years after shutting down the notorious Haddam Hills Academy for boys, two state agencies are investigating allegations of abuse and neglect at a sister school - Lake Grove at Durham.

Child Advocate Jeanne Milstein and Attorney General Richard Blumenthal are also examining hundreds of thousands of dollars in annual fees that Lake Grove pays related companies for consulting services.

And both officials say they are concerned that the state Department of Children and Families has failed to monitor Lake Grove effectively. The department paid Lake Grove $8.6 million in the fiscal year that ended June 30 to care for 116 children with severe mental retardation and mental illness.

DCF within the past two weeks has flooded Lake Grove with behavioral-health specialists to watch the nurses and other staff members at the school closely after hearing concerns over the safety of the children.

DCF Spokesman Gary Kleeblatt declined to discuss the nature of the concerns. This "intensive program review" will last another six weeks, said Kleeblatt, but Milstein and Blumenthal are concerned the intervention may have occurred too late.

Neither official would elaborate on the nature and scope of the alleged abuse.

"We certainly hope history isn't repeating itself," Milstein said Tuesday, referring to Haddam Hills that closed in 2001 following a series of confirmed cases of child abuse.

Haddam Hills in East Haddam also was paying millions of dollars to related companies for rent and consulting work - driving up the fees that the state paid to send troubled children there.

Lake Grove at Durham paid Windwood Meadows and Oikonomos of Medford, N.Y., $4.7 million from 1998 to 2003 for personnel and management services, federal financial filings show.

Lake Grove, Windwood Meadows and Oikonomos are part of the controversial Lake Grove family of schools headquartered in Medford.

These types of "close-party relationships can indicate conflicts of interest and waste, as well as fraud," Blumenthal said Tuesday.

"We want to make sure every dime of taxpayer money goes to the care and protection of children," Blumenthal said.

Senate President Pro Tem Donald E. Williams Jr., D-Brooklyn, presided over the legislature's Select Committee on Children during the Haddam Hills debacle. He said he is concerned about the situation at Lake Grove in Durham.

"These apparent close party transactions are very troubling," Williams said Tuesday. "I hate to think we are wasting millions of dollars that could otherwise be providing services for children in need. I think this needs a full and complete investigation."

Kleeblatt said the DCF was not aware of the underlying business relationships at Lake Grove in Durham until it began a closer scrutiny of the company following the Haddam Hills disclosures. Kleeblatt said DCF is satisfied that Lake Grove is not overcharging the agency.

New York state mental health authorities shut down all of Lake Grove's New York-based treatment clinics and sober houses last year for Medicaid fraud. The inspector general of the U.S. Department of Health and Human Services is conducting an audit of all Lake Grove entities in New York, Connecticut and Massachusetts, including Lake Grove at Durham.

Albert Brayson, formerly of Simsbury, is listed in New York business records as chief executive of Oikonomos, and he is one of the leaders of Lake Grove at Durham's parent corporation.

Brayson and Oikonomos executive Anthony Grimaldi did not respond to telephone messages and an e-mail Tuesday. Michael Suchopar, executive director of Lake Grove at Durham, did not return a telephone message Tuesday.

Blumenthal and Milstein's inquiry is separate from the federal audit. Milstein said she is particularly concerned about DCF's ability to closely monitor a business like Lake Grove, which the agency relies on because it is believed to be the only residential program in the state for abused and neglected children with significant mental retardation and mental illness.

"In addition to the money aspects and the allegations of abuse, we're looking into DCF's role as licenser, overseer, and consumer of Lake Grove's services," Milstein said. "These are some of our most vulnerable children."

DCF is reviewing staff supervision of children, administration supervision of staff, the use of restraints, and reports and incidents of abuse and neglect, Kleeblatt said.

He would not elaborate on the abuse reports or on the agency's specific concerns about Lake Grove.

He said the review has already resulted in "staffing and policy changes."

DCF expects to have a full corrective action plan in place for Lake Grove within six weeks.

Lake Grove has to comply with the corrective measures or it risks losing its contract with DCF.