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May 04, 2015

Bankrupt N.Y. Charity's Ex-CEO Seeking $1.2 Million Payout

The former chief executive of FEGS Health and Human Services is seeking $1.2 million in deferred pay as part of the shuttering New York City nonprofit's bankruptcy proceeding, The New York Times writes. Gail Magaliff led FEGS for seven years before retiring in November, weeks before the charity revealed a deficit of more than $19 million and announced plans to close.

Established during the Great Depression and until recently one of New York's biggest social-service charities with a budget of $250 million, FEGS declared bankruptcy in March and is turning over its needy clients and largely government-funded programs to other agencies. In legal filings last month, Ms. Magaliff said the charity is in breach of an agreement to pay deferred compensation she "earned over 25 years of employment as a senior executive."

Ms. Magaliff's lawyer did not respond to calls and emails for comment. In March court filings, current FEGS CEO Kristin M. Woodlock outlined the growth of the charity's financial problems on her predecessor's watch. Hundred of creditors and rank-and-file employees are also making claims on the charity's dwindled assets.