Ex-N.Y. Charity Leader Jailed for Role in $9-Million Fraud
July 24, 2014 | Read Time: 1 minute
William E. Rapfogel, a longtime leader in New York’s nonprofit and Jewish communities, was sentenced Wednesday to serve 40 months to 10 years in prison for stealing millions of dollars from the social-service charity he led for two decades, The New York Times reports.
In compliance with an April plea agreement, Mr. Rapfogel has paid $3-million in restitution to the Metropolitan New York Council on Jewish Poverty. He faced longer incarceration if he had failed to repay the full amount before sentencing.
Authorities said Mr. Rapfogel pocketed more than $3-million of some $9-million drained from the council through a scheme with the charity’s insurance broker to pad premium payments and split the extra funds. He served as the charity’s executive director, and enjoyed close ties with New York political leaders, from 1993 until last August, when he was fired amid an internal probe of the fraud.
Two other former Metropolitan Council executives and the head of the insurance firm have also pleaded guilty in connection with the scam.