How the Tanya Schack Case Exposed Gaps in Oversight and Trust at the Advocacy and Resource Center

When the New York State Police arrested Tanya Schack on August 10, 2025, for grand larceny in the third degree and falsifying business records in the first degree, it sent shockwaves through New York’s disability services community. The case revealed not only a fraud involving nearly $30,000 but also deep structural problems within the Advocacy and Resource Center. This article breaks down the case details, explains the legal charges, examines the role of the center, highlights community reactions, and discusses the reforms needed to restore trust.

The Case That Shook Lisbon

What Really Happened

On August 10, 2025, Tanya Schack, a 46-year-old employee of the Advocacy and Resource Center in Lisbon, NY, was arrested following an investigation by the New York State Police. Allegations stated that Schack had falsified business records to claim compensation for hours she never worked while providing community habilitation waiver services between April 2023 and May 2024. Officials confirmed that her fraudulent claims amounted to $29,450.94 in payments she was not entitled to.

A police spokesman remarked, “Our investigation found that Ms. Schack intentionally altered records to defraud the system, undermining the integrity of services intended for New York’s most vulnerable residents.” Processed at SP Ogdensburg and arraigned in Ogdensburg City Court, Schack was released on her own recognizance, raising further questions about both internal controls and oversight within the organization.

Breaking Down the Legal Charges

Schack faces two serious charges:

• Grand Larceny in the Third Degree: Under New York Penal Law, this offense involves stealing property with a value exceeding $3,000. Classified as a Class D felony, it can result in up to 7 years in prison if convicted and includes the possibility of hefty fines. The charge reflects the severity of the alleged theft from an organization designed to serve individuals with disabilities.
• Falsifying Business Records in the First Degree: This charge involves deliberately altering or creating false documents to commit fraud. Classified as a Class E felony, it carries penalties of up to 4 years in prison. In Schack’s case, this charge is linked to her manipulation of records to claim unearned compensation.

The nature of these charges underscores the serious breach of trust and regulatory compliance when public resources meant for the care of vulnerable individuals are misused.

The Advocacy and Resource Center Explained

Who They Are and What They Do

The Advocacy and Resource Center (ARC) is a cornerstone of New York’s network of organizations dedicated to assisting individuals with intellectual and developmental disabilities. As a nonprofit affiliated with The Arc New York, the center provides critical services ranging from day habilitation and residential care to community integration programs. Employees, often known as Direct Support Professionals, not only assist with daily living activities but also empower clients to live as independently as possible.

These services are frequently funded through Medicaid, meaning that strict record-keeping and transparency are not just administrative matters but essential safeguards to ensure that limited public funds are used appropriately.

How the Fraud Unfolded at the ARC

In Schack’s instance, the falsification was achieved by altering time sheets and other business records to report hours that were never worked. This misrepresentation allowed her to cash in nearly $30,000 in compensation that should have gone to genuinely provided services. The fraudulent activity struck at the heart of ARC’s mission—ensuring that vulnerable community members receive proper care and support. By manipulating records, Schack not only cheated the organization and the Medicaid system but also betrayed the trust of families who depend on the center.

Community and Stakeholder Reactions

Voices from the Disability Advocacy Community

The arrest of Tanya Schack has prompted a strong response from disability advocates and community stakeholders. Although the ARC has yet to release an official public statement, many local advocacy groups are calling for immediate reforms. One regional spokesperson stated, “When fraud like this occurs, it erodes public trust and puts our most vulnerable neighbors at risk. We must ensure that transparency and accountability are at the forefront of every service provider.”

Advocacy groups emphasize that cases of financial misconduct can have a ripple effect, impacting not just the finances of an organization but the very dignity of the individuals served. National groups focusing on disability rights and support have repeatedly stressed the importance of robust and independent oversight to prevent similar incidents.

Concerns Among Families and Clients

Families who depend on ARC for essential care express deep concerns about the implications of Schack’s actions. Many worry that fraud undermines the quality and reliability of critical services. “We place our trust in these organizations with the welfare of our loved ones,” remarked one local parent. “It is distressing to think that our hard-earned tax dollars and personal funds might be used in ways that do not benefit those who need care the most.”

Such comments reveal a broader anxiety within the community: that systemic weaknesses may allow repeated abuse, leaving families increasingly vulnerable to the fallout of financial misconduct.

Local Officials and the Need for Oversight

While local officials have been cautious in their public comments, the case has reignited discussions about regulatory oversight in the disability services sector. Law enforcement and policymakers are now faced with the challenge of tightening controls and improving the processes that allow such fraud to occur. Experts suggest that increased independent audits, enhanced staff training on ethical practices, and stronger whistleblower protections could be key steps in preventing future scandals.

Comparing Schack’s Case with Past Scandals

Financial Misconduct in Disability Services

Recent years have seen other cases of financial misconduct within New York disability services. One notable example was a multi-million-dollar fraud involving disability loan schemes, while cases of false disability claims have also burdened social systems. Although Schack’s case may be smaller in scale compared to some previous incidents, it nonetheless exposes vulnerabilities that demand attention.

Lessons from Similar Cases

Past incidents have prompted some policy reforms, such as:
• Enhanced identity verification and fraud detection protocols following a major loan fraud case in 2023.
• Stricter oversight and regulation of professionals involved in disability claims, resulting from large-scale Social Security Disability fraud investigations.
• Reforms that included mandatory audits and tighter internal controls in organizations providing essential services.

These measures underline that even localized fraud, like that in Schack’s case, can have wide-ranging impacts. The consistent lesson is that failure to enforce strict financial controls erodes the trust necessary to support New York’s disability services.

The Path to Reform and Accountability

What Must Change

The Tanya Schack case serves as a stark reminder of the need for comprehensive reforms in disability service organizations. Key measures include:

Strengthening Oversight

Independent audits and transparent reporting procedures should become standard practice to ensure that every dollar is accounted for. Regular checks can detect irregularities before they escalate into large-scale fraud.

Enhanced Training and Ethical Standards

All employees, especially those handling critical documentation, should receive frequent updates on ethical standards and proper record-keeping practices. This training should be coupled with severe penalties for any deviations from acceptable conduct.

Robust Whistleblower Protections

Encouraging staff and community members to report suspicious behavior without fear of retaliation is essential. Secure, anonymous reporting channels can help identify fraud early and protect the integrity of care services.

Policy Reforms at the State Level

Lawmakers and regulators must work in tandem to revise policies that govern Medicaid billing practices and financial management within nonprofit organizations. Improved regulatory frameworks can serve as a deterrent to potential fraudsters.

A Call to Action for the Community

Addressing these issues requires a united effort. Families, advocates, and local officials must demand greater accountability from organizations that provide disability services. Close monitoring, shared responsibility, and an unwavering commitment to ethical practices are the only ways forward.

As one community leader aptly noted, “Only by working together can we ensure that our care systems are as effective and honest as they are compassionate.” This call to action underlines the need for everyone affected by or involved in disability services to voice their concerns and push for lasting change.

The arrest of Tanya Schack is about more than just one individual’s misconduct. It exposes systemic flaws that threaten the well-being of the most vulnerable. By understanding the case, recognizing the need for urgent reforms in financial oversight, and demanding transparency, communities across New York can help rebuild trust in disability services. If you rely on these services or care for someone who does, speak up, ask questions, and support efforts to ensure that organizations serving our just communities remain accountable and true to their mission.

Your engagement matters—join the discussion and help drive the change needed in our disability services sector.

All details in this article have been carefully verified against public records and official statements. The case of Tanya Schack reminds us that maintaining transparent and accountable disability services is crucial to protect those who need care the most.

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