Melville Father, Son Charged With $3.5M Nonprofit Scam

A Melville man and his son have been accused of stealing millions from New York City drug rehabilitation centers they run in an alleged insurance and kickback scheme to fund their lavish lifestyles.

Alan Brand, who was until recently executive director of Narco Freedom, and his son, Jason, who worked as a manager for the Bronx-based nonprofit, were indicted on charges of insurance fraud and grand larceny. Alan was also charged with commercial bribe receiving and money laundering.

“People motivated solely by personal greed have no business administering to the serious health needs of other New Yorkers,” Attorney General Eric Schneiderman said in a statement Wednesday. On it’s website, the nonprofit bills itself as the “No 1 Outpatient Alcohol & Substance Abuse Treatment Program in New York City.”

Prosecutors said the father and son defrauded Arch Insurance Company out of $3.5 million by filing a false insurance claim in 2009 for storm damage to a former treatment facility Brooklyn—one of 10 facilities the nonprofit runs citywide.

They allegedly not disclose that Jason not only worked for Narco, but also owns the construction company that the nonprofit hired to make the repairs, DASO Development Corp., resulting in both entities also being charged with insurance fraud and grand larceny. Authorities added that Alan and Jason overstated the cost of the repairs.

Alan also allegedly received $13,000 in monthly kickbacks from a real estate developer who rented buildings to Narco—effectively skimming from the $40 million in taxpayer dollars that New York State annually allocated to help fund the group between 2009 and this year, according to investigators.

Prosecutors additionally received a court order freezing the suspects’ bank accounts, six cars, Narco Freedom, DASO Development and other properties—including their Melville homes and two others in Florida. Additional charges are expected, authorities added.

Jason and Alan Brand each face up to 25 years in prison, if convicted. Arraignment and attorney information was not immediately available.