State obtains $5.5M settlement from EHS, operator of dorms at St. George
The state Attorney General’s Office has obtained a $5.5 million settlement to resolve an investigation into what it calls mismanagement and excessive executive compensation at Educational Housing Services, Inc. (EHS), a not-for-profit corporation that provides more housing for students in New York City than any entity other than the colleges themselves.
While EHS maintains student residents around the city, in Brooklyn it’s best known for maintaining student residents in two buildings of the St. George Hotel, on Henry and Clark streets in Brooklyn Heights, since the late 1990s.
Settlement funds will be used to reduce student rents and improve the conditions of the students’ rooms, according to the Attorney General’s Office. Attorney General Eric Schneiderman’s investigation found that George Scott, EHS’s President until he was removed last month, misused EHS as a vehicle to generate personal wealth and subsidize his lavish lifestyle.