New York City Suspends Funding to Met Council Amid William Rapfogel Scandal

Scandal Tremors: William Rapfogel?s resignation under a cloud of scandal is already having repercussions for the Met Council on Jewish Poverty that he headed. Image by met council

By JTA August 16, 2013

New York has reportedly suspended all funding to the Metropolitan Council on Jewish Poverty following the firing of its longtime CEO, William Rapfogel, over alleged financial misdeeds.

“All pending awards have been put on hold until an investigation by the New York Department of Investigation is completed,” said mayoral spokesman Kamran Mumtaz, according to a report in The New York Post.

Unnamed sources quoted in the Post report says the move is holding up millions of dollars in payments from pending city contracts. The bulk of the organization’s revenue comes from federal, state and city funding. William Rapfogel allegedly inflated insurance bills and pocketed the overcharges for himself.

The Met Council removed Rapfogel, 58, from his positions following an internal probe discovered “financial irregularities and apparent misconduct in connection with the organization’s insurance policies,” the organization said Monday. The social service agency, which provides employment services, crisis intervention, emergency food and other programs for poor Jewish households, said in a statement it would “work diligently to appoint a replacement as quickly as possible.”

On the same day, Rapfogel in a statement through his lawyers said, “I deeply regret the mistakes I have made that led to my departure from the organization.”

Rapfogel’s lawyer reportedly said that Rapfogel’s wife, Judy, and her boss, New York State Assembly Speaker Sheldon Silver, were unaware of the scheme.

A message from our Publisher & CEO Rachel Fishman Feddersen

I hope you appreciated this article. Before you go, I’d like to ask you to please support the Forward’s award-winning, nonprofit journalism during this critical time.

The coming year promises to be filled with more complex and historic developments. We are entering an era where independent, fact-based Jewish journalism will be more important than ever. We need to be ready for whatever 2025 will bring, and with your help, we can be.

We’ve set a goal to raise $260,000 by December 31. That’s an ambitious goal, but one that will give us the resources we need to invest in the high quality news, opinion, analysis and cultural coverage that isn’t available anywhere else.

If you feel inspired to make an impact, now is the time to give something back. Join us as a member at your most generous level.

— Rachel Fishman Feddersen, Publisher and CEO