Nonprofit organizations in NYC are taking advantage of shelter contracts through fraudulent and abusive practices

Exploiting the city’s “right to shelter” policies is nothing new, so it was not surprising when a city councilman raised concerns about the company that replaced the controversial DocGo in providing services to illegal migrants potentially earning over $450 million, even more than DocGo was contracted for.

This corruption is not limited to one contract; it is ingrained in the system, not only in emergency migrant services.

Last week, the Department of Investigation highlighted the city’s entire $4 billion homeless shelter budget, which has increased from $2.7 billion just two years ago, as vulnerable to exploitation by grifters and the so-called “charity” human services industry.

This is why some City Hall aides are under investigation for allegedly influencing city contracts and taking kickbacks, as abuse is widespread in the shelter system.

Without significant reform, the surge in the city’s shelter needs due to the influx of asylum seekers was bound to bring a wave of waste, fraud, and abuse.

The Department of Investigation examined 51 nonprofit shelter providers and found major red flags in all of them, including issues like excessive executive compensation, nepotism, and double-dipping.

Twelve CEOs received annual salaries exceeding $500,000, two nonprofits employed family members of senior staff, and several executives had financial interests in subcontractor services and real estate leased by their agencies.

Despite high-profile cases during the de Blasio administration exposing major problems, the City Council has failed to address them, focusing instead on other issues.

In 2021, Victor Rivera, founder of the Bronx Parents Housing Network, was arrested and charged with bribery, and a Post investigation revealed CEO Jack Brown of Brooklyn-based CORE Services involved in questionable transactions.

Despite this recent history, the Department of Homeless Services has only implemented a few reforms since the 2021 report by the Department of Investigation.

The lack of oversight by the city, with contracts spread across multiple agencies, provides opportunities for grifters to take advantage of taxpayers.

As the city hastily signs emergency contracts without competitive bidding, the situation worsens in the third year of the migrant crisis.

DOI Commissioner Jocelyn Strauber warns about the importance of prevention, but it seems that no powerbroker in city government is concerned about stopping these fraudulent activities.