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Read the press release here.

Queens Nonprofit Under Investigation Blocked From Getting Taxpayer Money

By  Jeff Mays and James Fanelli | July 6, 2016 2:24pm 

 The Rev. Ernestine Sanders, the vice president and CEO of Clergy United for Community Empowerment, is being investigated by the city's Department of Investigation.
The Rev. Ernestine Sanders, the vice president and CEO of Clergy United for Community Empowerment, is being investigated by the city's Department of Investigation.
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Facebook/James Sanders

CITY HALL — The City Council is blocking access to almost a quarter of a million dollars in taxpayer money awarded to a nonprofit with ties to disgraced ex-state Sen. Shirley Huntley as the city's Department of Investigation launches an investigation into its actions.

The St. Albans-based group, Clergy United for Community Empowerment, says it provides mental health care, HIV services and infant mortality reduction in Southeast Queens. As DNAinfo New York first reported last week, DOI began looking at the finances of the group and into its executive vice-president and CEO, the Rev. Ernestine Sanders, in May.

City Council officials say they were aware of the investigation, which led them to place a hold on the funding. The group has received or been allocated a total of $991,623 in city money since 2009, according to City Council records.

On its federal tax returns, Clergy United reported receiving a total of $2.8 million in funding from 2010 to 2014. Sanders earns $58,000 per year for her work with the group.

In fiscal year 2016, the group received $218,582 from the City Council as a whole.

The money was to be used for a variety of purposes, including infant mortality reduction, a faith-based HIV/AIDS initiative and another HIV/AIDS targeted at communities of color, asthma control, and domestic violence prevention and education.

In the current 2017 fiscal year, the group was allocated $25,000 from City Councilman I. Daneek Miller for HIV counseling and $5,000 from Rory Lancman to create a web interface. The group's current website provides very little information. A page about the services the group offers is listed as being "under construction."

Miller said he has submitted paperwork to reallocate the funding that he has given to the group over the last two years so that the money and services are not lost.

"We have people in the district who could deliver the same services," said Miller.

Clergy United counts influential religious leaders as its members and the group's blessing is highly sought after by candidates for office.

It holds a monthly breakfast for elected officials and candidates to speak, one of which was recently attended by Comptroller Scott Stringer.

"Change happens when strong community leaders like CUCE guide the way," Stringer said in a tweet after the meeting.

Stringer's office says he was unaware the group was under investigation.

Lancman said he sees the group as a "sounding board" for issues that affect the borough.

"It is a collection of prominent clergy members who I know over the years have done good work," Lancman said. "Whether someone is doing something inappropriate, I don't know."

Lancman said he attended one of Clergy United's breakfast two months ago to talk about criminal justice reform. While there, a pastor raised an issue about a congregant who was having a hard time having his criminal record expunged, he said.

"Every South Queens community or neighborhood has some church or pastor involved in the organization, so my familiarity with them is the advocacy work they do around issues," Lancman said.

He said he will hold off on reallocating the group's funding until the DOI investigation is complete.

"If they get a clean bill of health from DOI the money is sitting there," Lancman said.

Miller said he was unaware that the group was being investigated. He said the first sign of a problem came when the group asked him to check why they were unable to draw down on their fiscal year 2016 funding.

'I just thought they were sloppy with their paperwork," Miller said.

Under the City Council's discretionary funding process, groups must spend their own money to provide services and then are reimbursed after showing proof.

After additional due diligence, Miller says he was told the problem was more serious.

Miller said he feels the group was doing what it was supposed to do with the taxpayer funding it was provided.

"I see their clients come in and out their office because their office is across the street from mine. I see them throughout the community doing testing pretty consistently, so I didn't have a problem with them," said Miller. "When you have more than 60 churches involved in a group the whole community is affiliated to some degree."

The group has shown unequivocal support for Huntley, who steered $75,000 in state taxpayer money to the group from 2007 to 2010.

In 2013, Huntley served 10 months in federal prison after pleading guilty to mail fraud for stealing $87,000 in taxpayer money allotted to an educational nonprofit she founded.

Not only did Clergy United's board support Huntley after she was charged and following her guilty plea, the group organized a welcome-home party when the former senator was released from federal prison.

Representatives from Clergy United have declined to comment. DOI officials also declined comment on the investigation.