An accounting firm that audits dozens of Jewish charities is now facing legal claims that its negligence led directly to the spectacular collapse of the Jewish social service agency FEGS in 2015. In a complaint filed in bankruptcy court in late March, FEGS’s creditors claimed that the charity’s auditors, the accounting firm Loeb & Troper…
Creditors left in the lurch by the collapse of the massive Jewish social service agency FEGS appear to be preparing to sue a former executive who took a $92,000 bonus as the charity imploded. In papers filed on February 7, attorneys for FEGS agreed to allow the creditors to bring lawsuits lawsuits against FEGS’s former…
The shuttered Jewish social service agency FEGS has agreed to pay $3.1 million to the union workers it left in the lurch when it collapsed in 2014. The agreement, filed the day before Thanksgiving, settles a number of claims that the union that represented 700 FEGS’s workers had brought against the organization. A bankruptcy judge…
What does it take to get booted from the Jewish charity industry? Being the second-in-command during the biggest Jewish charity catastrophe in decades, and walking away from the mess with a $92,000 bonus, is apparently not enough. Ira Machowsky, who was executive vice president of the $200 million Jewish charity FEGS at the time of…
Some of America’s leading Jewish not-for-profit groups are dropping a accounting firm following financial scandals at a string of the firm’s clients. New York-based Loeb & Troper has lost at least eight Jewish not-for-profit clients in recent years, including, in the past few months, the Jewish Federations of North America, which is the umbrella organization…
Shaken by the abrupt collapse of one of New York’s largest social service agencies, a consortium of not-for-profit groups is warning that others may also be in jeopardy if government doesn’t radically reform the way it works with outside groups. A report released today by the Human Services Council, an advocacy group for the nonprofit…
The biggest unsecured creditors in the bankruptcy case of the massive social service charity FEGS Health & Human Services are seeking tens of millions of dollars for a joint retirement plan serving thousands who work for New York Jewish charities. The claims, by UJA-Federation of New York and by a government agency that insures private…
Federal prosecutors are investigating the collapse of the bankrupt Jewish charity FEGS Health & Human Services, the charity revealed in an October 2 court filing. The nature of the investigation by a U.S. Attorney’s office is unknown, and spokespeople for the U.S. Attorneys for the Eastern and Southern District of New York would not confirm…
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