DiNapoli Finds Fraud at SUNY Downstate Medical Center

April 10, 2012 Updated: April 10, 2012

NEW YORK—The business practices at SUNY Downstate Medical Center have been less than legal, according to an audit by New York State Comptroller Thomas DiNapoli.

“The systemic breakdown in oversight found at SUNY Downstate Medical Center allowed for questionable practices that may have undermined the integrity of the purchasing process and raises concerns about whether the best price was obtained,” DiNapoli said in a statement.

Three anonymous letters were sent to DiNapoli’s office, calling to question how Eagle Two Construction, owned by Roxanne Tzitzikalakis, was consistently winning bids at the Downstate Medical Center. State law requires formal competitive bidding for all purchases exceeding $50,000, however the center requires it for bidding above $10,000.

The audit revealed that the companies Eagle Two Construction was bidding against were owned by Tzitzikalakis, or were fake companies.

In addition, a project manager at SUNY Downstate in 2007 had worked with a consulting group that had a relationship with a company connected with Tzitzikalakis.

The audit recommended SUNY Downstate pay back $49,890 in fraudulent work, as well as look at their future business practices. SUNY Downstate said it will review if paying back the funds is warranted and believes their current policies in place uphold the standards required by the comptroller.