Former FEGS Chief Suing Bankrupt Agency For $1.2 Million


The former chief executive of FEGS is suing the bankrupt Jewish social service agency for $1.2 million in deferred compensation.

FEGS Bankruptcy Filing Reveals Depth Of Financial Free Fall

Court documents show vast majority of agency programs losing money, CFO revolving door, ballooning overhead.

Staff Writer

By the time executives of FEGS Health and Human Services system became aware last November of the massive financial crisis they were facing, a “top down analysis” by a new management team and restructuring consultants revealed that 74 percent of its more than 350 programs were losing money.

Three-quarters of FEGS' programs were losing money.

FEGS Files For Bankruptcy, Gets Debt Financing From N.Y. Federation


FEGS, one of the country’s largest Jewish social services agencies, has filed for bankruptcy.
A month after announcing that financial problems were forcing its shutdown, FEGS Health & Human Services made the bankruptcy announcement in a news release on Wednesday.

UJA Exec Named To FEGS Probe Group


UJA-Federation of New York CEO Eric Goldstein is among the two dozen nonprofit human services executives and other experts in the field named to a blue-ribbon commission to examine the sudden shuttering of FEGS and other nonprofit human service providers.

The Weinberg Health Related and Human Services Center in Manhattan is among several now-closed FEGS agencies. Michael Datikash

FEGS Hit With Unfair Labor Practice Suit

Meanwhile, vendors vent that agency hasn’t been paying them.

Staff Writer

The union representing 1,400 FEGS employees charged FEGS Health and Human Health System, UJA-Federation of New York’s major social service agency, with engaging in unfair labor practices this week following its precipitous decision to close after discovering in December a $19.4 million deficit.

Robert Schulze, president of Moveco Moving Services in Jamaica, Queens. Courtesy of Robert Schulze

UJA-Fed Agencies To Pick Up Some FEGS Programs

Transfers to JBFCS, JCCA to occur as early as April 1.

Staff Writer

As FEGS prepares to close its doors in the wake of a major deficit, several other agencies under the UJA-Federation umbrella will be taking over some of its $250 million network of employment and guidance programs. They include the Jewish Board of Family and Children’s Services, Jewish Community House of Bensonhurst, the Jewish Community Center of Manhattan and the Jewish Child Care Association, with the transfer of contracts taking effect as early as April 1, The Jewish Week has learned.

FEGS’ Hudson Street headquarters.  Michael Datikash/JW

Questions About UJA-Fed ‘Early Warning System’


With the community still grappling with the shocking news that FEGS (Federation Employment and Guidance Service), one of the largest Jewish nonprofits in the country, is going out of business due to a major loss of funds, there is a temptation to connect its demise to the recent troubles of other local Jewish social service agencies.

New Fiscal Guidelines Failed To Sound Alarm

UJA-Fed’s accountability document, drawn up after Met Council scandal, didn’t provide ‘early warning’ of FEGS or NYLAG financial troubles.

Staff Writer

In the wake of financial scandals at two of its most prominent agencies, the board of UJA-Federation adopted new accountability guidelines for its beneficiary agency boards and senior management.

FEGS headquarters on Hudson Street. Its sudden collapse has shocked the community.  Michael Datikash/JW

Agencies Bracing For Impact Of Forced Cuts

Many services could come under the sequester knife.

Staff Writer

Local Jewish social service agencies are talking about increasing their employee workloads and making other changes to absorb expected government funding cuts as a result of Congress’ inability to agree on a new budget.

FEGS Honors Pop Artist Jeff Koons

Special To The Jewish Week

 Pop artist Jeff Koons is interested in the art of the grand gesture. But it is art on a very small scale that got him interested in FEGS, the Jewish communal organization that deals with employment, job training and counseling.

Koons became involved with FEGS through real estate developer and UJA-Federation of New York honorary board member Larry Silverstein and his wife Klara. He was invited to tour a downtown FEGS center in 2009, where he saw art being used to help people with various ailments.

Jeff Koons at FEGS.
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