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City orders scandal-marred shelter operator CORE Services to shut down

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The Department of Homeless Services has lastly pulled the plug on one of many metropolis’s largest shelter operators, CORE Services Group, after makes an attempt to reform the tarnished operator failed, metropolis officers disclosed Tuesday.

The transfer comes greater than a month after the Post and different publications revealed the non-profit’s chief government, Jack Brown, positioned friends on the payroll and established a community of for-profit subcontractors, which he used as his private money cow.

CORE’s shelters will both be shuttered or transferred to new operators over the approaching months — although no laborious deadline was given for the tip of operations.

“They had personnel that we felt were doing the wrong thing. People who are getting exorbitant salaries, we said, these things need to change,” Mayor Bill de Blasio mentioned throughout his day by day briefing when requested concerning the determination. “They did not change them, and now we’ve told them they’re out of business with us.”

Mayor Bill de Blasio
Mayor Bill de Blasio mentioned CORE took benefit of individuals in want.
Getty Images for American Museum
CORE Services Group CEO Jack Brown
CORE Services Group CEO Jack Brown made $1 million a yr.
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“We’re talking about people in need — folks who are homeless. And this organization took advantage of those people, and they will no longer be doing business with the City of New York,” he added.

Brown’s mixed compensation from the nonprofit and its associates reached $1 million yearly, a reality found by metropolis officers after they started to quietly evaluate CORE’s operations in 2020, regardless of years of pink flags about its operations.

But the non-profit stored scoring contracts — netting a complete of $763 million in metropolis contracts over the de Blasio administration’s eight years — till The Post and The New York Times printed investigations nearly concurrently that uncovered Brown’s net of for-profit corporations and extraordinary compensation.

It’s the newest contracting scandal to hit town’s community of nonprofit shelter operators.

A Post evaluate discovered that greater than $4 billion of the practically $16 billion let in DHS contracts over the past eight years went to a supplier that’s confronted allegations of wrongdoing.

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