N.Y. AG reaches agreement with Met Council

NEW YORK (Legal Newsline) -- New York Attorney General Eric Schneiderman and Comptroller Thomas DiNapoli announced Thursday an agreement with a charitable organization that will allow it to resume receiving public funds.

Under the terms of the agreement with the Metropolitan Council on Jewish Poverty, the organization will be able to facilitate reform of its governance processes, ensure public funds are used for their intended purpose and resume receiving public funds.

In September, Schneiderman's Charities Bureau alleged William Rapfogel, the former CEO of Met Council, and a co-conspirator stole charitable funds.

As part of the agreement, Met Council can resume providing its critical community services and ensure public confidence in the distribution of the funds.

"The fact that former Met Council employees and conspirators were able to carry out a large-scale fraud over an extended period of time raised serious questions about the misuse of public funds," Schneiderman said.

"The agreement we are announcing today will provide assurance that Met Council is implementing critical reforms to prevent the misuse of public funds, allowing the vital community services traditionally provided by Met Council to resume. This agreement allows the charity to continue its important mission of serving the poor and needy in a responsible fashion."

Met Council agreed to implement important reforms to strengthen and enhance its oversight, governance, financial and operational controls to prevent future misconduct.

The agreement also noted that Met Council's board of directors took necessary steps to address the misconduct and help restore the charity's ability to carry out its mission in a responsible manner.