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Scandal-scarred nonprofit rakes in over $500K in taxpayer dollars despite multiple probes

An embattled East Harlem nonprofit continues to rake in taxpayer dough — securing over half a million dollars in July despite reportedly being the focus of no less than three city and state probes, The Post has learned.

In October, several Exodus Transitional Community employees were busted for allegedly smuggling fentanyl, marijuana, and burner phones into Rikers Island. 

It subsequently lost a $5.64 million contract with the city Department of Correction, and the city Department of Investigation has probed the staffers, who were tasked with providing inmates with counseling and job training.

Yet the organization, which specializes in helping ex-cons transition back to public life, received a $518,000 jobs-program contract renewal in July with the Probation Department, according to records.

Exodus was also one of 10 organizations selected for a $20,000 grant through soft-on-crime Manhattan District Attorney Alvin Bragg’s office in late July to fund programming aimed at Curbing Youth Gun violence. 

Exodus staffers allegedly were caught smuggling drugs to Rikers Island last year, resulting in a DOI investigation. etcny.org

“Congratulations Manhattan, you’ve elected the only District Attorney whose office is aiding and abetting the criminals they ought to be prosecuting,” said City Council Minority Leader Joe Borelli. 

“There should be an immediate cessation of all [Exodus’] contracts with every government entity.” 

The Exodus windfall comes in the wake of several scandals last year, which culminated in Exodus’ former CEO Julio Medina stepping down from the company as well as his position as acting chair of the Board of Correction, The City reported.  

Manhattan DA Alvin Bragg’s office gave Exodus $20,000 for programming aimed at curbing youth gun violence. Gabriella Bass

The nonprofit has also been investigated by DOI over wrongdoing stemming from a separate, $121 million contract.

Exodus had been tasked to house recently released Rikers inmates in hotels, but relied on an unlicensed company for protective security services at the buildings, the outlet reported. 

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Exodus also has been the subject of a third investigation by the state’s Office of Addiction Services and Supports, after one of its former case workers allegedly defrauded Medicaid by billing for dozens of fictional sessions, The City reported.

Kandra Clark, vice president of policy and strategy at Exodus, said the staffer was fired and OASAS was notified immediately, adding that she was unaware of any investigation by the agency.

DOI declined to comment on its Exodus investigations.

OASAS did not respond to multiple requests for comment. 

Assemblyman Ron T. Kim (D-Queens) ripped the decisions to fork over more cash to Exodus and said it’s a byproduct of the city Outsourcing Vital Services to nonprofits. 

“This is one of many examples…we can go down the list of nonprofits and contractors that we keep renewing [their contracts] because we no longer have administrative will or capacity to fix stuff,” Kim said.

Clark, of Exodus, blamed City Hall on the company’s use of an unlicensed security firm at the hotels it had managed, claiming the Mayor’s Office of Criminal Justice had hired the company.

Assemblyman Ron T. Kim said the decision to give Exodus more funding is a result of the city outsourcing vital services to nonprofits.Hans Pennink

She also claimed that DOI’s investigation into its employees’ behavior at Rikers only found that one staffer brought in marijuana to the jail complex.

“With respect to violence intervention programming, we are becoming renowned in this space,” she added, noting the organization’s “strong partnership with NYPD.”

Doug Cohen, a spokesman for the Manhattan DA’s office, said that preventative programming for youths has been shown to help reduce gun violence and that the $20,000 contract with Exodus “was awarded following a meticulous review and evaluation process.”

Candace Sandy, a Probation Department spokeswoman, said the contract with Exodus requires a performance review by the 90-day mark, and the agreement will be canceled if the organization “does not deliver the promised service during this review period.”



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Scandal-scarred nonprofit rakes in over $500K in taxpayer dollars despite multiple probes

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