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NYC will monitor, not drop, nonprofit at center of federal corruption probe
By
Ryan Kost
Published Jun 4, 2026
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Ryan Kost / Gothamist
By
Ryan Kost
Published Jun 4, 2026
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A Brooklyn nonprofit is set to receive nearly $200 million in new city contracts two months after federal prosecutors charged its leaders with bribery and embezzlement.
The city says it will place BHRAGS Home Care under the watch of an independent monitor, rather than break ties with the homeless shelter operator.
City contracting records show BHRAGS is expected to receive at least two contracts beginning July 1. One worth $136 million is for shelter facilities for homeless adults. That’s up $42 million from the $94 million deal Gothamist first reported in April. A separate $50 million contract for "social services in commercial hotels" was also recently listed on a public database of contracts.
Together, the contracts and the monitorship amount to a decision to continue the city's relationship with BHRAGS even as prosecutors pursue charges against the organization's former leadership. The new contracts were awarded through the city's standard competitive bidding process.
"By appointing a monitor selected and managed by the [Department of Investigation], the city is better positioned to hold new leadership accountable and properly rehabilitate the organization," Department of Social Services spokesperson Neha Sharma said in a statement.
In March, federal prosecutors unsealed an indictment that charged BHRAGS' Executive Director Roberto Samedy and its former board chair Jean Ronald Tirelus with embezzling more than $1.3 million from the nonprofit and steering business to companies controlled by two codefendants, including one retired NYPD sergeant.
The indictment stemmed from concerns that the Department of Homeless Services had raised with the city's Department of Investigation in 2024. At the time, the department placed BHRAGS on a corrective action plan that required the organization to cut ties with Tirelus, bring in new leadership and end its relationship with the security company owned by the retired sergeant.
The organization has complied with those requirements and Sharma said the Department of Social Services believes BHRAGS can be turned around under new leadership. Samedy has also been placed on leave, BHRAGS has said.
"We know that the incredible frontline staffers working across our provider network step up to deliver quality services for vulnerable New Yorkers and do the right thing every day, and a few bad actors and actions at the executive level do not represent the work of the organization as a whole,” Sharma said in a statement.
The $136 million agreement represents the largest single contract BHRAGS has ever received from the city. It would run until June 2031, with an option to extend through 2035. It’s the only “traditional shelter” the city plans to keep with BHRAGS, according to the Department of Social Services.
A letter obtained by Gothamist shows the city also informed Councilmember Shahana Hanif on April 2, days after the indictment was unsealed, that an emergency shelter BHRAGS operates near the Gowanus Canal would be converted to a permanent facility with BHRAGS as the service provider. A lease for the space runs through 2056, records show.
The Department of Social Services didn’t specify whether the new $136 million agreement was for the Gowanus site or a separate shelter. Hanif's office confirmed the letter and said the councilmember supports the shelter itself, but declined further comment.
The $50 million contract appears to be for hotel-based services, a model the city is trying to move away from, and represents the upper band of what the city could ultimately end up paying BHRAGS, according to the Department of Social Services.
The city has also paid BHRAGS roughly $130 million through emergency contracts since 2022, most of which are set to expire this summer. And the City Council has directed an additional $500,000 in discretionary funds to the organization, largely at the direction of Councilmember Farah Louis.
Under the new arrangement, the monitor will have significant authority over BHRAGS, including the power to hire and fire board members and employees, according to city officials. A spokesperson said the department also plans to reduce BHRAGS’ shelter portfolio from nine sites to four, but didn't specify which sites would no longer be operated by the provider or whether this shift was largely the result of the emergency contracts expiring.
The plan to keep working with BHRAGS may speak to how hard it is to find providers capable of running shelters at the scale the organization does, said Alex Camarda, a senior policy adviser with Reinvent Albany.
Camarda suggested the city should find a different company to work with “at least in the short term” given the BHRAGS “lacked the internal controls to prevent their leadership from engaging in alleged corruption.”
A spokesperson for BHRAGS did not respond to multiple requests for comment.
Karen Yi contributed reporting.
Tagged
Politics
brooklyn
homelessness
new york city
public safety
Ryan Kost
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