5 board members of Brooklyn charities sued for wrongful real estate sale, misappropriation of funds
Accused of Wanting to Take Advantage of Brooklyn’s ‘Lucrative Real-Estate Market’
An attempted sale of two Brooklyn townhouses may have constituted an illegal real estate transaction. The New York state attorney general has filed a lawsuit against directors of two Brooklyn-based charitable organizations for alleged gross negligence and failed management of the organizations. A Brooklyn judge has granted a temporary restraining order to freeze the organizations’ assets.
Brooklyn Child and Family Services Inc. and Project Teen Aid Housing Development Fund Corp. operate two converted townhouses in Bedford-Stuyvesant. It is alleged that board members attempted to sell two converted Brooklyn apartments on the private market with the hopes of thousands of dollars. The homes, The Rose F Kennedy Family Center and the Rosa Parks Apartments, have been under the auspices of the nonprofits since the 1990s and were created as transitional residences for homeless, pregnant and parenting young women and their children.
But according to Attorney General Eric T. Schneiderman, members of the board went afoul of the charities’ mission and attempted to use the organizations as a conduit for personal financial gain.