One month before one of the largest Jewish charities in the country admitted to donors that it had lost $20 million, the agency’s executive vice president got a $92,000 bonus. The signs of the impending disaster that would soon send FEGS Health & Human Services spiraling into bankruptcy, and leave tens of thousands of its…
Another Jewish social service agency has replaced FEGS as New York City’s largest social service group. The Jewish Board of Family and Children’s Services, or JBFCS, is taking over $75 million worth of government and other contracts formerly filled by the Federation Employment Guidance Services, which shocked many in the nonprofit and Jewish community when…
The former chief executive of FEGS is suing the bankrupt Jewish social service agency for $1.2 million in deferred compensation. Gail Magaliff retired in late 2014, shortly before FEGS Health and Human Services — one of the largest social service providers in the United States — discovered a $19.4 million shortfall. Soon after, in late…
FEGS, the giant Jewish social service agency, filed for bankruptcy in the Eastern District of New York on March 18, the latest step in the months-long collapse of the massive charity. The Chapter 11 filing comes nearly two months after FEGS admitted it would close amid mounting financial problems. Concurrent with the filing, FEGS announced…
The Jewish social services behemoth FEGS Health & Human Services will soon file for bankruptcy, the Forward has learned. That filling could come as early as March 18, according to someone with knowledge of the decision, who asked not to be named because of the confidential nature of the process. FEGS did not respond to…
Just as a sneeze can set off an avalanche, and the murder of an archduke can spark a world war, the final collapse of one of the country’s largest Jewish charities may have been propelled by a letter from a state Medicaid regulator. New documents obtained by the Forward show that the signs of trouble…
The Jewish social service charity FEGS dumped increasingly large sums into a for-profit subsidiary in the years prior to its mysterious downfall in January, the Forward has learned. The AllSector Technology Group, a for-profit corporation owned by FEGS, was meant to earn money for FEGS. Instead, in 2011, FEGS began paying out massive sums to…
Two New York Jewish charities rocked by scandal in recent months have something in common: They were both audited by the accounting firm Loeb & Troper. For years, this small, Manhattan-based firm audited the financial reports of FEGS, which announced in January it would close after uncovering a previously undetected $19 million deficit. The firm…
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