Prosecutors Allege N.Y. Nonprofit Leader Stole $5-Million From Charity

The ousted head of the Metropolitan New York Council on Jewish Poverty conspired with others to loot more than $5-million from the charity and pocketed more than $1-million from the long-running scheme, prosecutors alleged Tuesday in filing larceny and other criminal charges against William E. Rapfogel, reports The New York Times.

Charging documents assert that Mr. Rapfogel began skimming money shortly after becoming executive director of the influential charity in 1992. Prosecutors claim he and unnamed confederates associated with the Metropolitan Council’s insurance broker padded the charity’s premiums by hundreds of thousands of dollars a year and plowed much of the extra money into political contributions.

Mr. Rapfogel, who was fired by the council last month, did not enter a plea Tuesday and waived his right to a speedy trial, which the Times says suggests that plea negotiations are or soon will be under way. New York City has put on hold $7.2-million in pending contracts and grants to the charity, which spent $112-million last year on food aid, home care, and other services for more than 100,000, mostly elderly clients.

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