In February, after a Times investigation revealed abuse by another homeless shelter operator in Bronx, Debrussio ordered a thorough audit of all nonprofits within the city’s shelter system, conflicting interests and spending. , Investigated the affairs. Authorities said they are aiming to complete the review by the end of the year.
Brown, 53, was one of the many non-profit executives investigated by the Times and found a way to personally benefit from the extraordinary injection of city spending. In addition to serving as CEO of the non-profit organization CORE Services Group, Mr. Brown has set up a security company that guards shelters, a maintenance company that repairs, and a catering business that feeds residents. Mr Brown raised his salary as the head of each company.
Homeless people living in one of CORE’s largest shelters in Queens complained about their rustic service and poor condition. Twelve residents interviewed by the Times said Mr Brown’s catering company frequently provided moldy bacon, poorly cooked meatloaf, and powdered eggs, causing the disease. They said security guards at Mr Brown’s company failed to disband the fight and often slept at work.
Nonprofits that receive city money should seek at least three independent bids on most contracts to prevent price spikes. However, according to an independent auditor’s report, CORE violated these rules and instead awarded a company overseen by Mr Brown a multi-million dollar business.
Mr Brown and his business practices had previously been scrutinized.
When Mr Brown was an executive at a private prison company in 2003, the company was involved in one of New York’s largest lobbying scandals and fined $ 300,000 for lobbying law violations. .. (According to CORE, Mr Brown was not involved in the fraud.)
He continued to work for his rival private prison company, Geo Group, and when the company was vying for a multi-million dollar federal contract to run a half-baked house, Mr Brown quietly broke his own nonprofit. Established, applied for the same contract and successfully underestimated his previous employer. According to court filings, Geo Group alleged that Mr Brown and his nonprofit were scammed and stole confidential documents. Mr Brown denied the allegations and settled the proceedings without admitting the misconduct.
After winning the federal contract, Brown’s charity, Community First Services, failed to provide critical services to prisoners, including counseling, vocational training, and drug rehab, according to a 2012 Times study. rice field. That same year, the New York State Audit & Supervisory Board, which oversees the state’s finances, concluded that Mr Brown had shown a “disturbing pattern of ethical violations.”