Gothamist
A non-profit newsroom, powered by WNYC.
Gothamist
Listen Live
News
Probe Finds Puerto Rican Day Parade Fundraisers Mismanaged Over $1 Million
By
Lauren Evans
Published Feb 13, 2014
Modified Feb 13, 2014
Share
FacebookTwitterRedditEmail
Never miss a story
Email address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .
Getty Images
By
Lauren Evans
Published Feb 13, 2014
Modified Feb 13, 2014
Share
FacebookTwitterRedditEmail
We rely on your support to make local news available to all
Make your contribution now and help Gothamist thrive in 2026. Donate today
Gothamist is funded by sponsors and member donations
As predicted earlier this week, State Attorney General Eric Schneiderman announced today he's replacing the bulk of the Puerto Rican Day Parade organizers, having found that fundraisers willfully mismanaged over $1.4 million in donations since 2008.
The shakeup was announced at a press conference this afternoon, though news of its coming has been circulating for days. According to Juan Gonzalez at the Daily News, the 9-month probe revealed "unreported revenues, massive misuse of donated airplane tickets and non-existent scholarships" perpetrated by the event's longtime fundraiser, Carlos Velasquez. The more stunning findings include vastly under-reported figures for donations made to fund scholarships, as well as $275,000 in flight vouchers that appear to have been redeemed for "personal use by [Velasquez] or his family members, [and for] business purposes unrelated to [the parade].”
The agreement announced today requires Velasquez and his associated Galos Corporation to pay $100,000 to the parade's organizing body, as well as forgive a $1 million debt apparently owed to him. Velasquez and his corporation are also "permanently barred from any future business role" associated with the parade or its organizers.
Ten new directors are being added to the parade's board, and three of its six current directors have stepped down—including President Madelyn Lugo—due to failure to "implement basic financial controls or exercise adequate supervision over Galo's’ conduct."
A statement issued by the AG makes it clear that the intention is not to force the parade's cancellation, despite the overhaul coming just three months ahead of its scheduled date.
“As the parade organizer, this nonprofit has a responsibility to the Puerto Rican community, and to its donors, to ensure that the parade is a source of pride for all New Yorkers," he wrote. "With the reforms we are announcing, the new board can now take responsibility for putting the NPRDP on firm footing, so that the parade can be a success both this year and well into the future.”
The full report is available in the below PDF:
Tagged
carlos Velasquez
puerto rican day parade
Lauren Evans
Read more
Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
MORE news
NY Archdiocese will soon settle $800M clergy sexual abuse claims
The deal would compensate over 1,300 alleged victims and help the church avoid bankruptcy.
By
Arya Sundaram
Published Oct 24, 2026 at 6:31 p.m. ET
Chinatown residents file lawsuit against after-hours construction on new 'mega jail'
Residents cite sleep disruption and dust-induced illness from nearly ‘round the clock’ construction.
By
Arya Sundaram
News
Chinatown residents file lawsuit against after-hours construction on new 'mega jail'
Residents cite sleep disruption and dust-induced illness from nearly ‘round the clock’ construction.
By
Arya Sundaram
Peepapalooza: NYC is heading to the Hudson Valley to watch the leaves
By
Elizabeth Shwe
and
Sean Carlson
NYPD: Officer shot, injured knife-wielding woman during ‘chaotic’ night at Queens home
By
Ryan Kost
3 slates vying to run Jersey City school board as city stares down major tax hikes
By
Michael Sol Warren
Never miss a story
Catch up on the most important headlines with a roundup of essential NYC stories, delivered to your inbox daily.
Sign upEmail address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .