Nonprofit at Center of Corruption Probe Keeps $94M NYC Contract

Officials mum on whether deal will be canceled amid federal bribery charges against leadership.

Apr. 3, 2026 at 6:19pm

Got story updates? Submit your updates here. ›

An extreme close-up of crumpled cash and financial documents, conceptually illustrating an investigation into alleged financial misdeeds at a nonprofit organization.A federal corruption probe has uncovered alleged embezzlement and bribery at a nonprofit with a lucrative city contract, raising concerns about oversight of public funds.NYC Today

A Brooklyn nonprofit whose leaders were indicted on federal bribery and embezzlement charges this week has a $94 million city contract to provide homeless shelter services set to begin this summer. The Department of Social Services has not said whether it plans to cancel the contract in light of the serious allegations against the organization's former executives.

Why it matters

This case raises concerns about the city's oversight of nonprofit contractors, especially those facing criminal charges, and whether public funds are being properly safeguarded. It also highlights the challenges of quickly finding alternative providers for essential social services during an ongoing homelessness crisis.

The details

BHRAGS Home Care Corp, which operates homeless shelters across New York City, was awarded the $94 million contract last year through a competitive bidding process to provide shelter for single adults in Brooklyn starting July 1. However, the indictment unsealed this week charges the nonprofit's former executive director Roberto Samedy and ex-board chair Jean Ronald Tirelus with embezzling over $1.3 million and steering business to companies controlled by co-defendants in exchange for bribes. The address listed for BHRAGS on the contract notice actually belongs to a security firm owned by one of the co-defendants, raising additional red flags.

  • The $94 million BHRAGS contract is set to begin on July 1, 2026.
  • BHRAGS has received around $130 million in emergency city contracts since 2022, most of which are expiring this summer.

The players

BHRAGS Home Care Corp

A Brooklyn nonprofit that operates homeless shelters across New York City and was awarded a $94 million contract to provide shelter services starting this summer, despite its former leadership facing federal corruption charges.

Roberto Samedy

The former executive director of BHRAGS who was indicted on federal bribery and embezzlement charges this week.

Jean Ronald Tirelus

The former board chair of BHRAGS who was also indicted on federal corruption charges this week.

Edouardo St. Fort

A co-defendant accused of paying bribes to BHRAGS executives in exchange for millions in shelter security contracts through his company Fort NYC Security.

Miguel Jorge

A co-defendant accused of involvement in the BHRAGS corruption scheme.

Got photos? Submit your photos here. ›

What they’re saying

“We are closely monitoring the situation and are in the process of determining next steps in light of these serious allegations.”

— Neha Sharma, DSS spokesperson

“I'm sure that the city has the legal authority to void the contract for a variety of reasons. The question — ultimately it will be the mayor who decides — is going to be 'Do we have to do this because if we don't do it then vulnerable people will be terribly hurt, or can we find somebody else who can do this and do it better?'”

— John Kaehny, Executive director, Reinvent Albany

“We have seen in the past public dollars continue to flow to vendors and subcontractors tied to corruption schemes. The city cannot afford to repeat those mistakes. When a vendor facing scrutiny is poised to receive its largest contract yet, particularly for similar services implicated in an ongoing corruption case, officials should take a hard look before committing significant public funds.”

— Ben Weinberg, Public policy director, Citizens Union of the City of New York

What’s next

The Department of Social Services has not indicated whether it will proceed with the $94 million BHRAGS contract set to begin in July, despite the federal corruption charges against the nonprofit's former leadership.

The takeaway

This case highlights the need for stronger oversight and accountability of nonprofit contractors, especially those receiving large city contracts, to ensure public funds are not being misused or diverted to corrupt actors. It also underscores the challenges of quickly finding alternative providers for essential social services during a homelessness crisis.