By Gary Snyder
The founder of Educational Housing Services, a
nonprofit group, that has rented affordable apartments to a generation of New York City college students siphoned millions of
dollars from the agency through a shell company, using the group’s money to fly
back and forth to a second home in Aspen, Colo., and to pay for a luxury
penthouse in Brooklyn, an investigation by the state attorney general’s office
has found.
The board was also
faulted for approving Mr. Scott’s salary: $718,032 in 2010 and as much as $1.4
million in 2007, amounts the attorney general called excessive. The board members were found to have received
exorbitant salaries, and some had inflated consulting contracts from the
company as well.
The founder of Educational Housing Services,
along with his wife, and the group’s board of directors, agreed to a $5.5 million
settlement to resolve the inquiry, the attorney general’s office. The five-member board agreed to resign and pay $1
million from their personal funds. They were barred from ever serving on the
board of a New York charity. (NYT)
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more Nonprofits: On the Brink (2006) Silence: The Impending Threat to the Charitable Sector (2011)
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