CORE Services Jack Brown Raised $1 Million in Taxpayer Funded Salary
Despite pledging late last year to sever all public ties with nonprofit housing provider CORE Services Group, the city has paid at least $1.4 million into its coffers in 2022. before finally pulling the plug, according to legal documents.
And even as the city scrutinized the homeless service provider, its beleaguered CEO Jack Brown was raking in a shocking $1,069,334 in salary and benefits from CORE and related entities, according to the latest tax filings obtained. by The Post.
Brown got a 15% raise and a $40,829 bonus from CORE, bringing his salary to $386,298, in 2020, according to filings. He got an additional $460,000 — an 8% increase from the previous year — from CORE-affiliated groups. On top of that, he received $188,461 – a 16% increase – and a bonus of $22,500 from a related nonprofit called CORE Services Group NY Inc.
“It’s completely irrelevant,” said Daniel Kurtz, a nonprofit attorney and former head of the state attorney general’s charities office.
Brooklyn-based CORE is being questioned by federal and city investigators. Brown, 53, previously worked for Correctional Services Corp., which was embroiled in a corruption scandal in Albany in the early 2000s.
While earning millions on the poor and desperate, Brown lives in a two-bedroom penthouse apartment at The Ashland, a luxury rental in Fort Greene, Brooklyn, where a similar unit costs $7,040 a month. The skyscraper has a Gotham Market food hall at its base, and residents enjoy amenities that include a pool hall and rooftop terrace.
Brown also bought a two-family house in Clinton Hill for $1.4 million in 2015, according to public records.
CORE had raised government contracts worth approximately $800 million since 2014. By the end of 2021, it was providing services to 1,400 individuals and families, including 1,100 homeless occupants in 10 hotels in Brooklyn, Queens and the Bronx.
Last fall, The Post documented how Brown built a network of for-profit companies to which he funneled millions in public funds in recent years. The city said it ordered CORE to shut down the groups.
The city had raised concerns about the organization’s expenses in 2019 and ordered it to submit to a forensic audit in 2020, the The New York Times reported in a similar exposé.
Reports also revealed that Brown had put family members on CORE’s payroll, including his mother and brother.
The organization admits that five of Brown’s relatives were CORE employees, out of 1,100, and claims they were “fully qualified for their positions” and hired under anti-nepotism policies.
The city sued Brown, CORE and related organizations in December 2021 stating in legal documents “CORE used these wholly owned for-profit subsidiaries to overburden the city and siphon off money intended to benefit vulnerable New Yorkers. in the pockets of its executives, including its CEO, the accused Jack Brown.
The lawsuit notes that there was a federal criminal investigation into CORE in which the city’s investigative department was involved.
CORE was eventually kicked out of the city’s homeless shelters on March 31. But despite the scandals and investigations, he says the city still owes him $37 million.
The Department of Homeless Services declined to say how much it paid CORE this year or why. He also declined to say who took over the organization’s contracts.
As homelessness increased under former mayor de Blasio’s administration, the city increasingly contracted nonprofits to run shelters.
CORE argues that as the city’s homeless problem continued to spin out of control, the de Blasio administration “sought to deflect criticism by scapegoating CORE in the media.” He then filed a baseless and misleading complaint against CORE in which he feigned ignorance of CORE’s business model, which had been disclosed in detail to the city as far back as 2017.”
CORE, in a statement to the Post released by its powerful public relations firm, Marathon Strategies, said race played a role in the criticism of Brown and the organization.
“Mr. Brown’s earned income matches that of leaders of similarly sized businesses. It’s too bad that black business leaders can’t succeed in America in 2022 without their character and motivations being challenged. “, indicates the press release.
He went on to say that it wasn’t until CORE “began seeking pending payments totaling nearly $37 million that DHS bureaucrats began to question CORE’s business model and integrity of its leaders.