New York Attorney General Schneiderman Announces $1 Million Settlement with Officials of So-Called Children’s Leukemia Foundation and Their Auditor
Attorney General Eric T. Schneiderman today announced that his office has reached a settlement agreement resolving a lawsuit brought against the Brooklyn-based National Children’s Leukemia Foundation (“NCLF”), its founder and leader Zvi Shor, its president Yehuda Gutwein, the founder’s son, Shlomo Shor, and its auditor, Shlomo Donn. The Attorney General had filed a nine-count petition to shut down NCLF in July 2015 in Kings County Supreme Court.
Through this settlement, NCLF will be permanently closed, its former officers barred from serving as fiduciaries of any New York charity, with nation-wide bans for the founder and his son. The former officers will also be barred from soliciting funds on behalf of any charity. The Attorney General will also recover $380,000 dollars, most of which will be directed to charities helping children with leukemia. Shor, age 64 and a resident of Brooklyn, New York, forfeited claims to an additional $612,844 in back-pay, in addition to a claim to a life-time pension and other benefits. NCLF’s former accountant and auditor must report the identities of any non-profit clients to the Attorney General’s Charities Bureau for the next three years. The settlement is subject to approval by the court.