Jewish Schools Win Slice of $18M Settlement

Contractor Overcharged for Food Services in New York

By Seth Berkman

Published September 19, 2012.
  • Print
  • Share Share

Four Jewish schools in New York City will receive part of an $18 million settlement after the state Attorney General’s office found that a food contractor overcharged clients for seven years.

From 2003 to 2010, Compass Group USA received various rebates from food vendors, but did not disclose or pass on those savings to more than 39 New York schools, which is required by law. As a result, schools were “charged more than was permitted for the food provided by Compass,” according to a press release issued by Attorney General Eric T. Schneiderman’s office.

Manhattan Day School, Magen David Yeshiva, Ramaz School, and Salanter Akiba Riverdale Academy are four of the five city schools that will receive settlement funds. Westchester Day and Westchester Summer Day will also receive compensation. In addition to the settlement, Compass will institute a nutritional code of conduct to comply with the Healthy, Hunger-free Kids Act passed by Congress on January 25. Measures of the code include partnering with local food suppliers to ensure a higher quality of healthy food delivered to students.

Compass must also provide quarterly disclosures to its educational clients in New York state, as well as semi-annual reports of its sales and rebating practices.

“Compass improperly profited by overcharging New York’s taxpayers and shortchanging our schools. There are no excuses for this kind of misconduct,” Attorney General Schneiderman said in a statement, also noting that Compass would be “held accountable for siphoning funds meant to benefit students.”

Each school’s contract is negotiated directly with Compass, based on state and federal regulations. The school’s can decide whether or not to continue business with Compass, who as part of the settlement, must establish a hotline for questions concerning rebates and pay for an independent auditor’s review of its rebating practices.

Compass issued a statement to the Forward, which said that “a misinterpretation of the New York contracts,” caused the company “to neglect to complete proper reconciliation of operating costs to the K-12 schools. “ The company said that K-12 contracts in New York are “distinct and unique“ and that once they were made aware of the transgressions, Compass immediately offered to pay what was due to the schools.


The Jewish Daily Forward welcomes reader comments in order to promote thoughtful discussion on issues of importance to the Jewish community. In the interest of maintaining a civil forum, The Jewish Daily Forwardrequires that all commenters be appropriately respectful toward our writers, other commenters and the subjects of the articles. Vigorous debate and reasoned critique are welcome; name-calling and personal invective are not. While we generally do not seek to edit or actively moderate comments, our spam filter prevents most links and certain key words from being posted and The Jewish Daily Forward reserves the right to remove comments for any reason.





Find us on Facebook!
  • Will Lubavitcher Rabbi Moshe Wiener be the next Met Council CEO?
  • Angelina Jolie changed everything — but not just for the better:
  • Prime Suspect? Prime Minister.
  • Move over Dr. Ruth — there’s a (not-so) new sassy Jewish sex-therapist in town. Her name is Shirley Zussman — and just turned 100 years old.
  • From kosher wine to Ecstasy, presenting some of our best bootlegs:
  • Sara Kramer is not the first New Yorker to feel the alluring pull of the West Coast — but she might be the first heading there with Turkish Urfa pepper and za’atar in her suitcase.
  • About 1 in 40 American Jews will get pancreatic cancer (Ruth Bader Ginsberg is one of the few survivors).
  • At which grade level should classroom discussions include topics like the death of civilians kidnapping of young Israelis and sirens warning of incoming rockets?
  • Wanted: Met Council CEO.
  • “Look, on the one hand, I understand him,” says Rivka Ben-Pazi, a niece of Elchanan Hameiri, the boy that Henk Zanoli saved. “He had a family tragedy.” But on the other hand, she said, “I think he was wrong.” What do you think?
  • How about a side of Hitler with your spaghetti?
  • Why "Be fruitful and multiply" isn't as simple as it seems:
  • William Schabas may be the least of Israel's problems.
  • You've heard of the #IceBucketChallenge, but Forward publisher Sam Norich has something better: a #SoupBucketChallenge (complete with matzo balls!) Jon Stewart, Sarah Silverman & David Remnick, you have 24 hours!
  • Did Hamas just take credit for kidnapping the three Israeli teens?
  • from-cache

Would you like to receive updates about new stories?




















We will not share your e-mail address or other personal information.

Already subscribed? Manage your subscription.