Where Most Needed

At a small business seminar last November, Patricia Laino offered a session "How to Become a Big Thinker: It’s OK to Make Money.  Find out the secrets of women who make six-figure salaries, and the skills of a successful entrepreneur."

Ms. Laino has now agreed with the state's attorney general's office to return $100,000 of a state grant made to the nonprofit Business Training Institute, Inc. (EIN 16-1411935 Form 990), one of the organizations she heads up. 

The 2004 Form 990 shows that Ms. Laino received $138,000 as director of the organization.  At the same time, an organization called Laino's Entrepreneurial Opportunities, Inc. received $120,000 in a consulting contract.  The attorney general's press release confirms that the consulting firm was controlled by Ms. Laino with a minority interest held by a board member of the nonprofit.  The contract was issued without competitive bidding and entailed much the same work that Ms. Laino was responsible for as executive director. 

Under the agreement, the non-independent members of the board will resign and be replaced by the end of the year with a larger board including members who are neither relatives of Ms. Laino nor employees of BTI. 

BTI is completely dependent upon fee-for-service income (a category that includes government contracts) for its $852,000 income.  The organization provides training of minorities in entrepreneurial skills.  According to this story in the Utica Observer Dispatch (affectionately known as the "UticaOD"), the contract with the state Education Department was a result of legislation passed in 2002.  The implication is that the grant was a result of some kind of legislative earmarking.  School district officials say they are happy with Ms. Laino's work and plan to continue the contract and not disqualify BTI from future work, but we can question the kind of entrepreneurial skills that the organization teaches with its example.