Current:Home > InvestModest needs? Charity founder accused of embezzling $2.5 million to fund lavish lifestyle-LoTradeCoin
Modest needs? Charity founder accused of embezzling $2.5 million to fund lavish lifestyle
View Date:2024-12-23 23:47:17
NEW YORK (AP) — The charity was called Modest Needs but federal prosecutors who filed charges against its founder say his weren’t.
Rather, prosecutors in the U.S. attorney’s office in Manhattan say, Modest Needs founder Keith Taylor had such expensive tastes that he embezzled more than $2.5 million from the charity between 2016 and May 2024 and spent it on meals at some of New York City’s priciest restaurants as well as cosmetic surgery and a luxury apartment.
Taylor, 56, was accused in a federal complaint unsealed Tuesday with embezzling funds intended to serve Modest Needs’ mission of helping the needy, evading more than $1 million in taxes and creating a fake board of directors who supposedly had approved his personal expenses.
“As alleged, Keith Taylor falsely claimed that donations to his charity would help working families with unexpected expenses that put them at risk of homelessness,” U.S. Attorney Damian Williams said in a news release. “Instead, Taylor allegedly took those donations to pay for his meals at upscale restaurants, rent for a luxury apartment in a Manhattan skyscraper, and even cosmetic surgery.”
Williams said Taylor “unconscionably took money from the pockets of those most in need, and he is now facing federal charges for his alleged crimes.”
Taylor’s attorney, Brian Ketcham, said his client “denies the charges and looks forward to clearing his name.”
Taylor founded Modest Needs in 2002 to help low-income families and individuals pay for expenses like medical bills or broken appliances.
The charity, which used crowdfunding to recruit donors, won praise for its small-scale philanthropy.
“Modest Needs is one of a new crop of Web not-for-profits that put a face on charity and give donors the sense that they’re fixing problems directly,” Forbes reported in 2008.
But federal prosecutors say that Taylor stole more than $2.5 million from Modest Needs and its donors and used the money on his own expenses such as $300,000 for his own rent on the 30th floor of a Manhattan high-rise and $320,000 on expensive restaurants including Per Se, Jean-Georges, Masa and Marea.
The menu at Marea lists a dry-aged ribeye at $240, and Per Se’s nine-course tasting menu is $390.
According to the complaint, Taylor tried to hide his embezzlement by falsely listing acquaintances as members of the charity’s board of directors and claiming that the board had approved his expenses.
The purported board members included a bartender at Jean-Georges, a friend and the friend’s house cleaner, none of whom knew that they had been listed on the charity’s website as board members, prosecutors said.
Additionally, prosecutors said, Taylor did not file personal income tax returns or pay income taxes on the money he had received from the charity for at least the calendars years of 2017 through 2022.
Taylor is charged with one count of wire fraud and one count of aggravated identity theft. He appeared in court Tuesday and was released on bond.
It was unclear whether Modest Needs was still operating Wednesday. An email sent through its website seeking comment was not returned.
veryGood! (26)
Related
- UConn, Kansas State among five women's college basketball games to watch this weekend
- Election 2018: Florida’s Drilling Ban, Washington’s Carbon Fee and Other Climate Initiatives
- Persistent poverty exists across much of the U.S.: The ultimate left-behind places
- Kristin Davis Cried After Being Ridiculed Relentlessly Over Her Facial Fillers
- Chipotle unveils cilantro-scented soap, 'water' cup candles in humorous holiday gift line
- It was a bloodbath: Rare dialysis complication can kill patients in minutes — and more could be done to stop it
- Philadelphia shooting suspect charged with murder as authorities reveal he was agitated leading up to rampage
- See Kendra Wilkinson and Her Fellow Girls Next Door Stars Then and Now
- Joel Embiid injury, suspension update: When is 76ers star's NBA season debut?
- Net-Zero Energy Homes Pay Off Faster Than You Think—Even in Chilly Midwest
Ranking
- Duke basketball vs Kentucky live updates: Highlights, scores, updates from Champions Classic
- Congressional Republicans seek special counsel investigation into Hunter Biden whistleblower allegations
- As the Gulf of Mexico Heals from the Deepwater Horizon Oil Spill, Stringent Safety Proposals Remain Elusive
- Celebrate Pride Month & Beyond With These Rainbow Fashion & Beauty Essentials
- Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Red Velvet, Please
- Lin Wood, attorney who challenged Trump's 2020 election loss, gives up law license
- Minnesota Pipeline Ruling Could Strengthen Tribes’ Legal Case Against Enbridge Line 3
- Rural Jobs: A Big Reason Midwest Should Love Clean Energy
Recommendation
-
What to know about Mississippi Valley State football player Ryan Quinney, who died Friday
-
Lily-Rose Depp and The Weeknd React to Chloe Fineman's NSFW The Idol Spoof
-
3 Arctic Wilderness Areas to Watch as Trump Tries to Expand Oil & Gas Drilling
-
Is Natural Gas Really Helping the U.S. Cut Emissions?
-
Homes of Patrick Mahomes, Travis Kelce burglarized, per reports
-
Lupita Nyong'o Brings Fierceness to Tony Awards 2023 With Breastplate Molded From Her Body
-
Helpless Orphan or Dangerous Adult: Inside the Truly Strange Story of Natalia Grace
-
New Wind and Solar Power Is Cheaper Than Existing Coal in Much of the U.S., Analysis Finds