BHRAGS' new CEO says the nonprofit lacked basic controls as shelter contracts ballooned amid migrant crisis

# What happened

# How BHRAGS expanded BHRAGS moved into shelter work amid the migrant crisis beginning in spring 2022. The first emergency shelter contract began in October 2022 for $4.6 million. Within two years the organization was operating nine emergency shelters on city contracts that Gothamist says ultimately totaled about $185 million.

Pierre said the group had no chief financial officer, procurement director, or chief compliance officer when she arrived. She described home care as "cut and dry" compared with shelters, which require managing security, food, staff and invoicing processes that release funding only after invoices are submitted.

# Corruption charges and immediate fallout

Pierre called BHRAGS "the victim" of the alleged scheme and said she had seen no evidence that other staff at the nonprofit were involved. City agencies later placed BHRAGS on a corrective action plan and required more oversight.

# Contracts and continued city business Despite mounting concerns, city records show BHRAGS continues to hold large contracts. Gothamist reports one current contract is worth more than $100 million and another pending the city comptroller's approval is worth about $50 million. BHRAGS also agreed to years of oversight by an independent monitor to be selected by the city's Department of Investigation.

The story also documents earlier warning signs as the organization expanded. In December 2023 Fort NYC Security — a company BHRAGS hired for some shelters — sued BHRAGS alleging underpayment and pressure into a profit-sharing deal. Fort Security is tied to a federal corruption probe and is listed as the address for BHRAGS in a $94 million city contract. By March 2024 the city directed BHRAGS to hold back payments to Fort.

# Leadership response and next steps Pierre, a former associate commissioner of shelter operations for NYC's Department of Homeless Services, said she came in to build systems and register contracts properly. She declined to directly say whether BHRAGS had taken on too many contracts too quickly, saying the group is "always looking" to diversify and that the city was seeking willing shelter providers during the migrant influx.

Under Pierre's leadership, BHRAGS now has a reduced shelter portfolio and has accepted independent oversight. The federal case against former leaders remains active and the four defendants have pleaded not guilty.

# What remains unresolved Gothamist's reporting raises questions about how large city contracts were awarded to an organization without basic financial and compliance functions, and why contracts continued amid internal red flags and legal disputes. The federal prosecution is ongoing, and the city will select a monitor to oversee BHRAGS' operations for years.