Crime Watch

Woman indicted for stealing money from Lynbrook charity

FBI says taking money from special needs organization benefitted her 'lavish lifesyle'

Posted

A Merrick woman was one of three people indicted on July 15 for allegedly embezzling hundreds of thousands of dollars from a Lynbrook-based charity that provides support services for people with special needs.

Wafa Abboud, 48, of Merrick, Marcelle P. Bailey, 49, of Floral Park, and Rami Misbah Taha, 39, of the Bronx, were charged with embezzlement and bank fraud in connection with Abboud’s purchase of her Merrick home.

The charges were announced by Robert L. Capers, U.S. attorney for the Eastern District of New York; state Attorney General Eric Schneiderman; and Diego Rodriguez, assistant director-in-charge of the FBI’s New York field office.

“Embezzlement of public funds meant to aid individuals with developmental disabilities impacts some of the most vulnerable members of our community,” Capers said in a statement. “With this indictment, we serve notice that those who engage in such crimes will be vigorously investigated and held to account.”

According to the federal indictment, between January 2011 and her termination in May 2016, Abboud served as executive director of Human First Inc., a not-for-profit agency that provided services to children and young adults with autism and other developmental disabilities throughout the metropolitan area. Court documents show that she directed the agency to pay approximately $900,000 in purported consulting fees to another company controlled by Bailey.

Abboud allegedly used hundreds of thousands of dollars of those funds to pay her personal expenses, including more than $114,000 in personal credit card debt, which included charges for cosmetic surgery, family vacations, jewelry, meals and spa treatments. She also used the funds to pay property taxes on her Merrick home and to make large international wire transfers.

According to the U.S. attorney’s office, in December 2014 Abboud purchased the home for $1.3 million, making a down payment of $340,000. In the months before the purchase, she authorized hundreds of thousands of dollars in payments from Human First to companies controlled by Taha that were purportedly doing renovations of Human First-owned properties. Instead, those funds were allegedly re-routed to Abboud and used for her down payment.

Then, between April and December 2015, Abboud directed Human First to pay more than $400,000 to several of Taha’s companies, the vast majority of which was subsequently transferred to a construction company as payment for renovations on Abboud’s residence.

Abboud, Bailey and Taha were also charged with conspiracy to commit bank fraud in connection with false statements they made to secure the $1 million mortgage on Abboud’s home.

“As alleged, Wafa Abboud embezzled and laundered hundreds of thousands of dollars from a charity she was entrusted to run over a time period of five years,” Rodriguez said in a statement. “Abboud used co-conspirators to help her steal funds that were intended to help children with disabilities. Instead, the funds were used to finance a lavish lifestyle. Corruption is corruption, wherever it exists.”

The defendants could each face up to 55 years in prison if found guilty of all of the charges.

According to a statement sent to the Herald by Sheila Lennon, senior vice president of marketing and development at United Cerebral Palsy of New York City, Abboud was fired on May 27, and UCP was tasked with interim management of Human First until a new executive director can be hired. “Our goal is to make sure that a smooth transition will take place at Human First, so that its staff can continue to offer quality programs to people with disabilities in underserved communities of Long Island and New York City,” the statement reads.