Ex-CFO of New York Charity Sentenced for Kickback Scheme

July 7, 2014

A former executive of a prominent New York City charity has been sentenced to pay $775,000 in restitution and serve four months in jail for conspiracy and grand larceny in what authorities call a scheme to steal $9 million over two decades.

Herbert Friedman, ex-chief financial officer of the Metropolitan Council on Jewish Poverty, admitted in state court in May that he received about $250,000 in the kickback scheme with insurance payments between the early 1990s and 2009. The charity’s former CEO, William Rapfogel, and two other men previously pleaded guilty.

The New York attorney general’s office says the sentence for 80-year-old Friedman takes into account his age, medical condition and cooperation.