NYC Awards Millions In New Contracts To Shelter Provider After Federal Corruption Charges

NEW YORK, NY— New York City plans to award nearly $186 million in new contracts to BHRAGS Home Care, a Brooklyn-based homeless shelter provider whose former leaders face federal corruption charges, according to city records first reported by the Gothamist.

The contracts signal the City will continue doing business with BHRAGS despite a federal indictment unsealed in March that charged former Executive Director Roberto Samedy and former board chair Jean Ronald Tirelus with embezzling more than $1.3 million from the nonprofit and steering business to companies linked to associates.

City records show BHRAGS is slated to receive a $136 million contract beginning July 1 to operate homeless shelter facilities for adults.

The City also listed a separate $50 million contract for social services in commercial hotels.

Rather than sever ties with the organization, city officials said they will place BHRAGS under the supervision of an independent monitor selected and managed by the Department of Investigation.

“By appointing a monitor selected and managed by the DOI, the city is better positioned to hold new leadership accountable and properly rehabilitate the organization,” Department of Social Services spokesperson Neha Sharma wrote in a statement.

Federal prosecutors alleged Samedy and Tirelus used the nonprofit to enrich themselves and associates through fraudulent schemes involving city-funded contracts. The investigation began after concerns raised by the Department of Homeless Services were referred to the Department of Investigation in 2024.

Since then, the City required BHRAGS to remove Tirelus, install new leadership and end its relationship with a security company connected to one of the defendants.

Samedy has been placed on leave, according to the organization.

“We know that the incredible frontline staffers working across our provider network step up to deliver quality services for vulnerable New Yorkers and do the right thing every day, and a few bad actors and actions at the executive level do not represent the work of the organization as a whole,” Sharma said.

The $136 million agreement would become the largest single city contract ever awarded to BHRAGS.

The deal runs through June 2031 and includes an option to extend through 2035.

According to a letter obtained by Gothamist, city officials also informed Councilmember Shahana Hanif shortly after the indictment became public that an emergency shelter near the Gowanus Canal operated by BHRAGS would be converted into a permanent facility.

Records show the lease for the site extends through 2056.

Under the new oversight structure, the independent monitor will have authority to hire and fire board members and employees, city officials said.

The Department of Social Services also plans to reduce BHRAGS' shelter portfolio from nine sites to four.

Alex Camarda, a senior policy adviser with Reinvent Albany, questioned the decision to continue working with the provider.

Camarda said the City should consider another operator, “at least in the short term,” because BHRAGS “lacked the internal controls to prevent their leadership from engaging in alleged corruption.”

A spokesperson for BHRAGS did not respond to requests for comment.