A.G. Schneiderman Announces Temporary Restraining Order Against Albany Pastor And Wife For Allegedly Transfering $100K From Charity To Themselves

Pastor Edward Smart And Wife Marion Allegedly Wrote Over $100K In Checks From Israel Community Service Program, Inc. To Themselves

Schneiderman: Those Who Steal from Charities They Oversee Will Be Held Accountable

Attorney General Eric T. Schneiderman recently announced that his office has obtained a temporary restraining order against Pastor Edward Smart and his wife, Marion Smart. The order prohibits them from transferring or obtaining any funds of Israel Community Service Program, Inc. (“ICSP”), a charitable organization formed to provide child care and other programs to the Albany community. The order, signed by Supreme Court Justice Hon. Christina L. Ryba, was issued based on evidence suggesting that Pastor Smart wrote checks totaling more than $100,000 from ICSP’s accounts to himself and his wife.

“Charitable assets should not personally benefit those charged with their management,” said Attorney General Schneiderman. “The amounts transferred by Pastor Smart to himself and his wife, allegedly without approval by the organization’s board, deprived the community of funds intended to support ICSP’s charitable programs. Any violations of the Not-for-Profit Corporation Law’s prohibition against private inurement will not be tolerated by this office.”

The directors and officers of a charitable organization are required to oversee the organization and act as stewards of the assets entrusted to their care. New York law prohibits them from reaping a private benefit from funds held for charitable purposes or setting their own compensation.

In addition to securing the restraining order, the Attorney General filed a lawsuit seeking to remove the Smarts as directors and officers of ICSP for breaching their fiduciary duty to the organization, and requiring the Smarts to account for and repay the transferred funds.

These allegations are based on information obtained by the Attorney General’s Charities Bureau suggesting that the Smarts were unauthorized to accept compensation from ICSP and that the checks written by Pastor Smart were not related to any legitimate expenses incurred by the corporation.

The petition and related papers were filed in the Albany County Supreme Court.

The case is being handled by Assistant Attorneys General Laura Sprague and Lawrence Reina. Investigator Michael Fennelly, under the supervision of Supervising Investigator Harry Czosnykowski, provided investigative assistance. James Sheehan is the Charities Bureau Chief. Alvin Bragg is Executive Deputy Attorney General for Social Justice.

The Office of the Attorney General thanks Albany County District Attorney P. David Soares and Assistant District Attorney Jessica Blain-Lewis for their assistance and collaboration.

More information about the Charities Bureau and organizations regulated by the Bureau may be found at www.charitiesnys.com.