New York Attorney General Eric Schneiderman announced Wednesday that the state is suing trustees of two Brooklyn charities, alleging that they removed homeless and low-income residents from buildings they owned in order to sell the properties, the New York Post reports. The lawsuit charges five trustees of Brooklyn Child and Family Services and Project Teen Aid HDFC with misconduct for the 2013 eviction of clients from two properties that were subsequently put on the market for $5.7 million.
The nonprofits have received at least $26 million in federal funding as well as money from New York City's Department of Homeless Services. The state suit alleges the board members "engaged in a pattern of self-dealing and wasteful and illegal actions" and seeks to place the charities in receivership. Gene Baynes, financial manager for Brooklyn Child and Family Services and a defendant in the suit, denied the accusations, saying, "Every single dime since I have been there, I can account for, and it will be accounted for properly."