Former Fiscal Officer for Non-Profit Company Pleads Guilty to Stealing Nearly $2.3 Million from Brooklyn Charity

Earlier today, Marcia Joseph pleaded guilty at the federal courthouse in Brooklyn,  to wire fraud in connection with her embezzlement of approximately $2.3 million from her employer, a non-profit organization that provides employment and education services for those in need.  Joseph was arrested in October 2023.  Today’s proceeding was held before United States District Judge Eric N. Vitaliano. When sentenced, Joseph faces up to 20 years’ imprisonment.

Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI), announced the guilty plea.

“With her guilty plea today, the defendant admitted that she failed in her duty to serve a non-profit organization by stealing millions of dollars for personal expenses that were meant to be spent in its mission helping vulnerable members of the community,” stated United States Attorney Peace.  “When she is sentenced, the defendant will learn the penalty for her dishonesty and greed.”

“This defendant created a company for the sole purpose of siphoning $2.3 million from the City-funded nonprofit where she worked.  She took valuable funds meant for the educational and employment needs of economically disadvantaged New Yorkers for her personal profit. DOI thanks our federal partners, the U.S. Attorney’s Office for the Eastern District of New York and the FBI, for their commitment to protecting precious public funds that help those in need,” stated DOI Commissioner Strauber.

According to the complaint, court filings, and facts presented during the plea hearing, Joseph was the senior fiscal officer of Company-1, a 501(c)(3) non-profit organization located in Brooklyn, New York that provides comprehensive services to support employment opportunities for persons with emotional, developmental, and/or physical disabilities, and those who are economically disadvantaged.  Joseph set up a company called Prestige Business Services (“Prestige”), which purported to provide specialized services to other companies on behalf of Company-1.  In truth, Prestige performed no work, and was used by Joseph for the exclusive purpose of embezzling more than $2.3 million from Company-1 over a 16-year period.  Joseph used the money paid by Company-1 to Prestige to pay for numerous personal expenses, including approximately $235,000 in mortgage payments; $207,000 in credit card payments; $98,000 in car payments; $45,000 in Amazon expenses; and various other personal items, such as home remodeling, spa treatment, landscaping expenses, and luxury goods.  Joseph also withdrew nearly $100,000 in cash, disbursed approximately $16,000 to friends and family, and issued approximately $50,000 in Prestige checks to herself.

The government’s case is being handled by the Office’s Public Integrity Section.  Assistant United States Attorney Eric Silverberg is in charge of the prosecution with assistance from Paralegal Specialists Elizabeth Reed and Melissa Bennett.

The Defendant:

MARCIA JOSEPH (also known as “Marcia James,” “Marcia Lewis,” and “Marcia Peters”)
Age:  57
Baldwin, New York

E.D.N.Y. Docket No. 24-CR-4 (ENV)