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05/22/2012 10:03 PM

Federal Prosecutors Investigating Fraud At Seedco

By: NY1 News

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Federal prosecutors say there's evidence of widespread fraud at a nonprofit that operated job placement centers in the city.

Earlier this year, a city investigation found employees at Seedco collected millions of dollars in federal funds for more than a thousand job placements it didn't actually make.
Now the U.S. attorney's office is suing the non-profit, seeking fines and damages.

A spokesperson for Seedco says the individuals named in the suit no longer work for them and the organization is cooperating with the investigation.