CEO Earning $1 Million Salary A Year to Operate Homeless Shelter Accused of Fraud

Jack A. Brown III earns over $1 million each year to run a homeless shelter in New York City The New York Times reported. Brown is the President and CEO of CORE Services Group & CORE Companies which was founded in 2005. The Brooklyn-based nonprofit provides community services to more than 3,000 residents every day. CORE partners with the New York City Department of Homeless Services (DHS) and has made relationships with the New York City Department of Youth & Community Development (DYCD), and the Federal Bureau of Prisons (BOP) to provide services and programs.

The New York Times reported the city has provided funding to a nonprofit managed by Brown. New York City’s homelessness crisis has caused the city to be more intentional about its investments. The city has allocated more dollars to organizations that cater to underserved residents.

During the last four years, the homeless shelter operated by Brown has generated over $352 million in city funding. The funds were designed to help people get back on their feet. However, residents claim they haven’t been the beneficiaries of those funds.

“A lot of money is going into this place,” Annabelle Alexander, an 83-year-old woman who lived at CORE’s Beach House shelter, told The New York Times. “But it’s not going to us.”

Residents expressed concerns about the poor living conditions in Brown’s shelter including rooms that were filled with rodents and mold.

Some people are accusing Brown of putting city funds and contracts for his personal gain. The New York Times discovered that at least $32 million in non-profit contracts have been used to accelerate the goals of for-profit entities that are associated with Brown. According to the report, he has provided family members with six-figure salaries. He’s also provided employees with luxury perks such as gym memberships and cars.

Concerns have been expressed and audits have not lived up to expectations. As of now, New York City continues to provide millions in funding to CORE.

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