N.Y. Nonprofit Paid Millions of Dollars to Founder and His Wife

A nonprofit housing company that operates more than 5,000 rooms for college students in New York pays its president $1-million a year and paid millions more in contracts with a firm owned by his wife, according to the New York Daily News.

Educational Housing Services, founded by George Scott in 1987, is the city’s largest provider of off-campus dormitory space, with eight facilities in Manhattan and Brooklyn.

Mr. Scott, a flamboyant entrepreneur whose business card features a picture of him in sunglasses on a motorcycle, has earned an average of $1-million a year from the charity since 2007. In 2009 the organization paid $4.9-million to Student Services Inc., a company owned by Mr. Scott’s wife, Yun, to provide Internet, cable, and phone service in the dorms.

Mr. and Ms. Scott declined to comment to the Daily News. The New York State attorney general’s office started an inquiry into Education Housing Services finances last year.