Friday, December 6, 2013


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Not-for-profit executive charged in six-year theft scheme

NEW YORK – A nonprofit executive was arrested and accused of pocketing taxpayer dollars intended for public services and capital improvements in New York City. A multi-agency joint investigation, including NYC DOI and two federal agencies, exposed the theft of approximately $373,000 in public funds provided by New York State, the New York City Council, and federal earmark grants.  The arrest of Dorothy Ogundu was announced on Thursday by Comptroller Thomas DiNapoli, Attorney General Eric Schneiderman and New York City Department of Investigation (NYC DOI) Commissioner Rose Gill Hearn

According to the indictment, Ogundu received two types of government grants for Angeldocs: program grants to support Angeldocs programs and capital grants to improve the Angeldocs facility. To obtain payment on the program grants Angeldocs received, Ogundu falsely claimed that she spent grant funds on expenses related to various Angeldocs programs, primarily rental space for the programs. The indictment alleges that Ogundu diverted nearly all of the program grant funds to pay the mortgage and utilities on a commercial building she owned through a holding company, instead of using the building for the programs she promised to provide.

To obtain payment on the capital grants Angeldocs received, Ogundu claimed that she was building a state-of-the-art demonstration kitchen and making other capital improvements to a building that she falsely claimed was used by Angeldocs. Instead, Ogundu allegedly received kickbacks on the kitchen project from a contractor and diverted other capital grant funds to pay the mortgage on her building and other personal expenses.

As a result of the scheme, Ogundu stole approximately $373,000 in government grants: approximately $91,000 from the City of New York, approximately $87,000 from the State of New York and approximately $195,000 from the United States.

Ogundu, allegedly engaged in a scheme to defraud the City of New York, the State of New York and the United States using her not-for-profit corporation, Angeldocs, Inc. Angeldocs received a total of twelve government grants. The indictment alleges that Ogundu stole a portion of each of the twelve government grants by filing fraudulent requests for reimbursement and making false statements to the government agencies administering the grants. Ogundu used the money she stole from these government grants to pay the mortgage and utilities on a commercial property she owned, make improvements to that property to increase its value, purchase and ship vehicles to Nigeria, and make other purchases for her personal benefit and for the benefit of her for-profit business.

“Dorothy Ogundu pocketed hundreds of thousands of city, state and federal taxpayer dollars intended to help those who need it most with their health care costs,” said Attorney General Schneiderman. “City, state and federal funds intended to serve New Yorkers in need should not be used to line the pockets of people running charities. Working together with Comptroller DiNapoli, we will use every tool at our disposal to crack down on anyone abusing the public trust.”