An embattled homeless shelter provider has secured at least $1.9 million in city funding since being under federal investigation on allegations that its executives used taxpayer cash to enrich themselves, the Daily News has learned.
CORE Services Group, which was founded in the mid-2000s and used to be one of the biggest shelter operators in the city, has faced the federal probe since at least December, according to paperwork filed in Manhattan Supreme Court by former Mayor Bill de Blasio’s administration.
The feds raided CORE’s offices in DUMBO, Brooklyn, on Dec. 7 as part of the investigation, which is described as “criminal” in nature, the court papers detail. The probe is being jointly conducted by federal authorities and the city Department of Investigation.
The DOI declined to comment Friday, as did a spokesman for the U.S. Attorney’s office in Brooklyn.
The Brooklyn House Residential Reentry Center, a facility operated by CORE Services Group. (Noah Goldberg/)
The details about the criminal probe were contained in a lawsuit de Blasio’s administration filed against CORE on Dec. 13.
The suit asked a judge to allow the city to sever all ties with CORE in the wake of a New York Times report that found the company’s founder and chief executive, Jack Brown, had steered millions of dollars in city funds to for-profit subsidiaries he controlled. Brown also used taxpayer cash to bankroll generous salaries for several relatives as well as company perks like cars and gym...
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