Founder And Former CEO Of Charity Pleads Guilty To Multimillion-Dollar Charity Fraud And Tax Evasion

Press Release Founder And Former CEO Of Charity Pleads Guilty To Multimillion-Dollar Charity Fraud And Tax Evasion Monday, August 18, 2025 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York United States Attorney for the Southern District of New York, Jay Clayton, announced that KEITH TAYLOR, the founder and former chief executive officer of Modest Needs Foundation (“Modest Needs”), a charitable organization, pled guilty today before U.S. District Judge Jennifer L. Rochon to defrauding the charity and its donors by stealing millions in donations meant for low-income families and spending them instead on personal expenses—including rent in a luxury apartment building in midtown Manhattan, food delivery services, and lavish meals at some of New York City’s most expensive restaurants—and lying about the charity’s oversight and governance. TAYLOR also pled guilty to evading more than a million dollars in federal income taxes and is scheduled to be sentenced on January 20, 2026.“Keith Taylor preyed on the trust of New Yorkers who gave generously to help struggling families,” said U.S. Attorney Jay Clayton. “Those who use charitable dollars to line their own pockets undermine the work of our many great charities and the special tax status charities enjoy. They must be brought to justice.”According to the Superseding Indictment, the Complaint, filings, and court proceedings:In or about 2002, TAYLOR founded Modest Needs, a 501(c)(3) charitable organization that used a crowdsourcing model to help low-income workers pay for unexpected expenses like medical bills or broken appliances. Its mission was to provide short-term financial assistance to individuals and families living paycheck-to-paycheck who were faced with an unexpected crisis or expense that they could not pay.Since at least 2015, TAYLOR embezzled more than $2.5 million from the charity and its donors and used that money to fund his lavish personal spending. TAYLOR regularly dined at Per Se, Jean-Georges, Masa, and Marea in midtown Manhattan, sometimes as often as twice a day, spending more than $320,000 of charity funds at New York City restaurants and steakhouses. Funds donated to the charity paid over $300,000 of TAYLOR’s rent for a luxury apartment on the 30th floor of a midtown Manhattan skyscraper. TAYLOR also used charity funds to buy himself expensive electronics, pay over $100,000 to food delivery services, and pay for his own medical expenses. TAYLOR put over $270,000 of charity funds directly into his personal brokerage account. TAYLOR also routinely paid his other personal expenses from the charity’s bank accounts.TAYLOR continued to defraud Modest Needs and its donors, even after his arrest in June 2024 on these charges. Even though he purportedly resigned his employment with Modest Needs and no longer was supposed to have access to Modest Needs’ bank accounts, as a condition of his pretrial release, TAYLOR continued to use Modest Needs’ funds for his personal expenses, including to pay for meals, medical expenses, and rent for his luxury apartment, all in violation of the conditions of his pretrial release in this case.TAYLOR attempted to hide his embezzlement of charity funds by creating a fake board of directors and claiming it had approved his personal spending and provided oversight over the organization. TAYLOR used the names of his acquaintances and falsely listed them on the charity’s tax forms and website as board members. TAYLOR’s acquaintances who were listed as the charity’s board members included a bartender from Jean-Georges, a friend, and his house-cleaner, none of whom ever attended a board meeting or even knew that they had been listed on the charity’s website or tax forms as board members.For at least the calendar years of 2017 through 2024, TAYLOR did not file personal income tax returns or pay income taxes on the millions of dollars in income he received from the charity, evading more than a million dollars in federal income taxes.* * *TAYLOR, 58, of New York, New York, pled guilty to one count of wire fraud, which carries a maximum sentence of 30 years in prison because he committed the offense while on pretrial release, and eight counts of tax evasion, each of which carry a maximum sentence of five years in prison.The minimum and maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.Mr. Clayton praised the exceptional investigative work of Internal Revenue Service-Criminal Investigation and the Special Agents of the United States Attorney’s Office. My office and our law enforcement partners will continue to do all that we can to protect the community from the devastating consequences of pernicious fraud schemes. If you believe you are a victim of Taylor's fraud, please contact [email protected] you are a victim, and would like to send the Judge presiding over this case a victim impact statement, which describes how this crime impacted you and your family, your statement can be emailed to [email protected]. The Court will consider any statements sent in connection with sentencing of defendant Keith Taylor.If you are a victim, and would like to speak at Keith Taylor’s sentencing hearing, to describe to the Judge how Keith Taylor’s crimes impacted you and your family please email [email protected] case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Eli J. Mark, Rebecca R. Delfiner, and James G. Mandilk are in charge of the prosecution. Contact Nicholas Biase, Shelby Wratchford(212) 637-2600 Updated October 30, 2025 Topic Public Corruption Component USAO - New York, Southern Press Release Number: 25-190

Press Release Founder And Former CEO Of Charity Pleads Guilty To Multimillion-Dollar Charity Fraud And Tax Evasion Monday, August 18, 2025 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York United States Attorney for the Southern District of New York, Jay Clayton, announced that KEITH TAYLOR, the founder and former chief executive officer of Modest Needs Foundation (“Modest Needs”), a charitable organization, pled guilty today before U.S. District Judge Jennifer L. Rochon to defrauding the charity and its donors by stealing millions in donations meant for low-income families and spending them instead on personal expenses—including rent in a luxury apartment building in midtown Manhattan, food delivery services, and lavish meals at some of New York City’s most expensive restaurants—and lying about the charity’s oversight and governance. TAYLOR also pled guilty to evading more than a million dollars in federal income taxes and is scheduled to be sentenced on January 20, 2026.“Keith Taylor preyed on the trust of New Yorkers who gave generously to help struggling families,” said U.S. Attorney Jay Clayton. “Those who use charitable dollars to line their own pockets undermine the work of our many great charities and the special tax status charities enjoy. They must be brought to justice.”According to the Superseding Indictment, the Complaint, filings, and court proceedings:In or about 2002, TAYLOR founded Modest Needs, a 501(c)(3) charitable organization that used a crowdsourcing model to help low-income workers pay for unexpected expenses like medical bills or broken appliances. Its mission was to provide short-term financial assistance to individuals and families living paycheck-to-paycheck who were faced with an unexpected crisis or expense that they could not pay.Since at least 2015, TAYLOR embezzled more than $2.5 million from the charity and its donors and used that money to fund his lavish personal spending. TAYLOR regularly dined at Per Se, Jean-Georges, Masa, and Marea in midtown Manhattan, sometimes as often as twice a day, spending more than $320,000 of charity funds at New York City restaurants and steakhouses. Funds donated to the charity paid over $300,000 of TAYLOR’s rent for a luxury apartment on the 30th floor of a midtown Manhattan skyscraper. TAYLOR also used charity funds to buy himself expensive electronics, pay over $100,000 to food delivery services, and pay for his own medical expenses. TAYLOR put over $270,000 of charity funds directly into his personal brokerage account. TAYLOR also routinely paid his other personal expenses from the charity’s bank accounts.TAYLOR continued to defraud Modest Needs and its donors, even after his arrest in June 2024 on these charges. Even though he purportedly resigned his employment with Modest Needs and no longer was supposed to have access to Modest Needs’ bank accounts, as a condition of his pretrial release, TAYLOR continued to use Modest Needs’ funds for his personal expenses, including to pay for meals, medical expenses, and rent for his luxury apartment, all in violation of the conditions of his pretrial release in this case.TAYLOR attempted to hide his embezzlement of charity funds by creating a fake board of directors and claiming it had approved his personal spending and provided oversight over the organization. TAYLOR used the names of his acquaintances and falsely listed them on the charity’s tax forms and website as board members. TAYLOR’s acquaintances who were listed as the charity’s board members included a bartender from Jean-Georges, a friend, and his house-cleaner, none of whom ever attended a board meeting or even knew that they had been listed on the charity’s website or tax forms as board members.For at least the calendar years of 2017 through 2024, TAYLOR did not file personal income tax returns or pay income taxes on the millions of dollars in income he received from the charity, evading more than a million dollars in federal income taxes.* * *TAYLOR, 58, of New York, New York, pled guilty to one count of wire fraud, which carries a maximum sentence of 30 years in prison because he committed the offense while on pretrial release, and eight counts of tax evasion, each of which carry a maximum sentence of five years in prison.The minimum and maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.Mr. Clayton praised the exceptional investigative work of Internal Revenue Service-Criminal Investigation and the Special Agents of the United States Attorney’s Office. My office and our law enforcement partners will continue to do all that we can to protect the community from the devastating consequences of pernicious fraud schemes. If you believe you are a victim of Taylor's fraud, please contact [email protected] you are a victim, and would like to send the Judge presiding over this case a victim impact statement, which describes how this crime impacted you and your family, your statement can be emailed to [email protected]. The Court will consider any statements sent in connection with sentencing of defendant Keith Taylor.If you are a victim, and would like to speak at Keith Taylor’s sentencing hearing, to describe to the Judge how Keith Taylor’s crimes impacted you and your family please email [email protected] case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Eli J. Mark, Rebecca R. Delfiner, and James G. Mandilk are in charge of the prosecution. Contact Nicholas Biase, Shelby Wratchford(212) 637-2600 Updated October 30, 2025 Topic Public Corruption Component USAO - New York, Southern Press Release Number: 25-190