Questions Raised Over N.Y. Funds for Charities Tied to Councilman
June 11, 2009 | Read Time: 1 minute
The New York Times reports on questions over municipal money for nonprofit groups affiliated with the City Councilman Larry B. Seabrook.
The African-American Bronx Unity Day Parade, incorporated as a charity by Mr. Seabrook and two associates about a decade ago, has netted more than $100,000 by leasing space from landlords and subletting it at much higher rates to other nonprofit groups affiliated with the councilman, according to the Times. Those groups’ rents were later reimbursed by the city.
The parade organization never received IRS approval to operate as a nonprofit organization and has not filed tax returns. The three groups that leased space from it have received more than $2.3 million in municipal funds since Mr. Seabrook joined the city council in 2002. They have typically received satisfactory ratings from the city for providing training and other services.
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