Fraud Discovered at New York Charity

Officials at the Gloria Wise Boys and Girls Club have defrauded the charity of hundreds of thousands of dollars, reports The New York Times.

The Bronx charity’s executive director, Charles Rosen, and its former deputy director for operations, Jeffrey Aulenbach, pleaded guilty to charges of grand larceny and obstruction of government administration.

The organization received $9-million a year in city financial support and some of this money was diverted through hidden bank accounts to pay bonuses for Mr. Rosen and four other officials, as well as home renovations and luxury cars, the newspaper said.

Investigators found that the charity submitted false reimbursement documents, improperly lent $875,000 to Air America Radio, and had five executives who stole $244,616 from its accounts.

Air America has agreed to repay the city $625,000, of which $250,000 will be given back to the Gloria Wise charity. The city has cut off support to the organization, which last year lost its status as a member of Boys and Girls Clubs of America.