N.Y.C. Severs Ties With Housing Boss Who Earned $1 Million a Year

9 of the 62 teams that run shelters are on an inner metropolis watch checklist for points that embrace conflicts of curiosity and monetary issues. All of them proceed to obtain metropolis funding.

In February, after a Occasions investigation uncovered abuses by one other homeless shelter operator within the Bronx, Mr. de Blasio ordered a sweeping audit of every nonprofit group within the metropolis’s shelter system to look at conflicts of curiosity, spending and nepotism. Officers have stated they purpose to finish the assessment by the tip of the 12 months.

Mr. Brown, 53, was considered one of a variety of nonprofit executives examined by The Occasions who discovered a solution to personally profit from a rare infusion of metropolis spending. Along with serving because the chief government of the nonprofit he based, CORE Companies Group, Mr. Brown began a safety agency that policed his shelters, a upkeep firm that made repairs in them and a catering enterprise that fed the residents, data confirmed. Mr. Brown collected a wage as the top of every firm.

Homeless individuals dwelling in considered one of CORE’s largest shelters in Queens complained of threadbare providers and poor circumstances. A dozen residents interviewed by The Occasions stated Mr. Brown’s catering firm continuously served them moldy bacon, undercooked meatloaf and powdered eggs, inflicting them to turn into ailing. They stated the safety guards from Mr. Brown’s firm failed to interrupt up fights and sometimes slept on the job.

Nonprofit teams that obtain metropolis cash are required to solicit a minimum of three unbiased bids for many contracts to forestall value gouging. However CORE violated these guidelines and as a substitute merely awarded hundreds of thousands of {dollars} in enterprise to the businesses overseen by Mr. Brown, in line with an unbiased auditor’s report.

Mr. Brown and his enterprise practices had beforehand come underneath scrutiny.

When Mr. Brown was an government at a non-public jail firm in 2003, the corporate was concerned in one of many greatest lobbying scandals in New York historical past and fined $300,000 for breaking lobbying legal guidelines. (CORE stated Mr. Brown had not been concerned in any misconduct.)

He went on to work at a rival non-public jail firm, Geo Group, and because the firm was vying for a multimillion-dollar federal contract to run midway homes, Mr. Brown quietly shaped his personal nonprofit group, utilized for a similar contract and efficiently underbid his earlier employer. Geo Group sued Mr. Brown and his nonprofit for fraud, arguing that he had stolen confidential paperwork, in line with court docket filings. Mr. Brown denied the allegations and settled the go well with, with no admission of wrongdoing.

N.Y.C. Severs Ties With Housing Boss Who Earned $1 Million a Year Source link N.Y.C. Severs Ties With Housing Boss Who Earned $1 Million a Year

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