NYC Cuts Off Millions Of Dollars In Funding To Metropolitan Council On Jewish Poverty In Wake Of Rapfogel Embezzlement Scandal

[A] council insider said Rapfogel “personally benefitted” -- in essence stole or misused agency money — and that’s why he was ousted. NYC's Department of Investigation is conducting its own probe to determine if city funds provided to Met Council were stolen or used for fraudulent or corrupt purposes. That could include any pay-to-play scheme involving city funds in exchange for campaign contributions to pols.

William Rapfogel

The New York Post reports:

The city has suspended millions of dollars in funding to the Metropolitan Council on Jewish Poverty following a state criminal probe of its former [Modern Orthodox] CEO, William Rapfogel.

The freeze coincides with a separate probe of the social services giant by the city Department of Investigation.

“All pending awards have been put on hold until an investigation by DOI is completed,” said mayoral spokesman Kamran Mumtaz.

State Attorney General Eric Schneiderman is looking at Rapfogel -- a close pal of Assembly Speaker Sheldon Silver -- for allegedly accepting kickbacks from Met Council’s [Breslov hasidic] insurance agent and directing campaign contributions from the agent to favored politicians.

Sources said Met Council is due “several million” dollars from pending city contracts.

Contracts that haven’t already gone through the final approval process will be frozen, sources said.

Met Council fired Rapfogel -- its CEO since 1992 — last week after investigating an anonymous complaint about “financial irregularities and apparent misconduct.”

Rapfogel issued a startling statement of apology for wrongdoing without providing specifics the same day his firing was announced.

The agency is searching for a new CEO -- but sources said the damage already done will be devastating.

Met Council gets a lion’s share of its $33 million budget from the federal, state and city governments.

But it also gets millions of dollars in private donations.

Met Council insiders worry about an extensive backlash, which insiders fear will dry up.

Some longtime board members were not even aware that Rapfogel was pulling in more than $400,000 in salary and benefits heading an organization that provides services to the needy, particularly seniors on fixed incomes, insiders said.…

[A] council insider said Rapfogel “personally benefitted” -- in essence stole or misused agency money — and that’s why he was ousted.…

DOI is conducting its own probe to determine if city funds provided to Met Council were stolen or used for fraudulent or corrupt purposes.

That could include any pay-to-play scheme involving city funds in exchange for campaign contributions to pols.…

[Hat Tip: Ruthie.]

Rapfogel Scandal Posts:

NY AG Investigates Met Council On Jewish Poverty's Rapfogel In Stunning Criminal Probe

What Did Disgraced Former Met Council On Jewish Poverty Head Actually Do Wrong?

Comments

[S M L]

"...a close pal of Assembly Speaker Sheldon Silver ..."

Perfect. Another fish rotting from the head down (or back). If it's sleazy and involves NYS government somehow look for Silver to figure in it. Eventually he'll be brought down or so we should all hope.

[Jeff]

This has the potential to affect a lot of people. Met Council owns and operates a number of apartment buildings for the elderly, as well as, I believe, supplementary food programs and the like. This could have some very serious consequences.

[Jeff]

A related article in the Forward (Shmarya might have posted this back in July; it's a subject about which he's been very vocal) that illustrates the reason this has the potential to be so devastating to so many:

http://forward.com/articles/179934/the-ignored-jewish-poor/

[Pieter Filter]

Slick Willie?