NYC homeless-shelter operator stashed pals on payroll, created lucrative spin-offs: records

NEW YORK POST:

The CEO of one of the city’s largest nonprofit shelters stashed kin on the payroll and funneled millions of dollars into companies he has financial stakes in — alleged glaring conflicts of interest that the city claims it’s now cracking down on.

The Post examined 2,000 pages of tax returns, contracting disclosures and legal documents involving CORE Services Group and found a web of companies with extensive ties to the nonprofit’s CEO, Jack Brown. 

Experts told The Post that the set-up appears to serve little purpose other than placing Brown at the center of lucrative transactions.

Among the alleged questionable practices revealed by the documents:

  • Brown created a string of for-profit companies that have received millions of dollars to provide key services at CORE’s shelters, documents show.
  • A firm in which Brown holds a substantial stake received more than $3 million in rent over two years from his non-profit, according to tax filings.

More at the NY Post

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