Fundraiser for N.Y. Parade Accused of Misusing $1-Million

The nonprofit that organizes New York City’s National Puerto Rican Day Parade will be overhauled following an eight-month state investigation that found the event’s chief marketer and fundraiser and his company misappropriated $1-million intended for the festivities, writes The New York Times.

Carlos Velasquez will repay $100,000 to the parade and forgo about $1-million in fees under a settlement announced Thursday by the state attorney general’s office. No criminal charges were filed, but Mr. Velasquez and his Galos Corporation were barred from future participation in the event, which annually packs Fifth Avenue with marchers, celebrities, politicians, and corporate sponsors.

A lawyer for Galos said Mr. Velasquez had been lax in bookkeeping but insisted he had used the undocumented funds for parade expenses, not his own benefit.

The settlement also calls for several of the parade organization’s leaders to step down, including Chairwoman Madelyn Lugo. Authorities said the board had not exercised basic financial controls or adequate oversight of Galos’ work.