A Brooklyn nonprofit will likely receive nearly $200 million in new city contracts two months after federal prosecutors charged its leaders with bribery and embezzlement, Gothamist reported.
The city says it will place BHRAGS Home Care under the watch of an independent monitor, rather than break ties with the homeless shelter operator.
City contracting records show BHRAGS is expected to receive at least two contracts beginning July 1. One worth $136 million is for shelter facilities for homeless adults. That’s up $42 million from the $94 million deal Gothamist first reported in April. A separate $50 million contract for "social services in commercial hotels" was also recently listed on a public database of contracts, the news site reported.
In March, federal prosecutors unsealed an indictment that charged BHRAGS' Executive Director Roberto Samedy and its former board chair Jean Ronald Tirelus with embezzling more than $1.3 million from the nonprofit and steering business to companies controlled by two codefendants, including one retired NYPD sergeant, Gothamist said.
The nonprofit operates home care facilities and shelters in Flatbush, Gowanus and seven other sites in Brooklyn.
The city has also paid BHRAGS roughly $130 million through emergency contracts since 2022, most of which are set to expire this summer. And the City Council has directed an additional $500,000 in discretionary funds to the organization, largely at the direction of Councilmember Farah Louis, the news site said.
Under the new arrangement, the monitor will have significant authority over BHRAGS, including the power to hire and fire board members and employees. The city will also reduce BHRAGS’ shelter portfolio from nine sites to four, but didn't specify which sites would no longer be operated by the provider or whether this shift was largely the result of the emergency contracts expiring, Gothamist reported.
