Tuesday, June 24, 2008

CITY COUNCILMAN GIVES PROXY LOAN


Recchia doled out funds improperly
City Councilman Domenic Recchia sponsored thousands of taxpayer dollars for a nonprofit that gave a wealthy board member an improper interest-free loan, a Daily News probe has found.
City councilman funds group that improperly made big loanThe $60,000 in Council funds was earmarked last year for the Sephardic Angel Fund, a nonprofit that's supposed to award no-interest loans to "poor, distressed or underprivileged persons" to start or improve businesses.
But the group's treasurer, Eddie Shamah, got a $50,000 interest-free loan in 2005, tax documents show. The nonprofit later admitted the loan was a blatant conflict of interest when it applied for a federal program that bars such self-dealing.
Posted by Queens Crapper at 12:10 AM 1 comments Links to this
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Addendum:
Councilman Recchia has stated to YFP that this article is a false accusation. YFP welcomes his response in writing so that it may be shared with the readers.
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