Ex-N.Y. Charity Leader to Repay $3-Million for Larceny Plot

William E. Rapfogel, until last year one of New York’s most prominent nonprofit leaders, admitted in court Wednesday to taking part in a large-scale theft scheme throughout his two-decade tenure at the helm of an influential social-service charity and was ordered to pay $3-million to the organization, The New York Times reports.

Mr. Rapfogel faces 3 1/3 to 10 years in prison after pleading guilty to grand larceny, money laundering, and other charges. The term will increase to four to 12 years if he does not make full restitution to the Metropolitan Council on Jewish Poverty by his July 16 sentencing. He has repaid $1.8-million to date.

The charity fired Mr. Rapfogel last year after the scheme came to light. His predecessor as the council’s executive director, David Cohen, also pleaded guilty Wednesday to larceny and conspiracy. He will serve one year in prison and repay $650,000 under a plea deal.

According to court documents, the thefts began in 1992 under Mr. Cohen. He and then Mr. Rapfogel colluded with executives at the council’s insurance firm to overpay for premiums and skim off the excess cash. Mr. Rapfogel pocketed more than $1-million and channeled some of the funds into political contributions. New York Attorney General Eric T. Schneiderman said the plot drained more than $9-million from the charity in total.