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Board 7 Chair Steps Down Amid Fraud Charges

By HEATHER HADDON

Nora Feury, the chair of Community Board 7 for the past 17 years, stepped down last week in the face of accusations that she and an associate stole over $800,000 from their Bronx Head Start program, which is overseen by the Roman Catholic Archdiocese of New York. Greg Faulkner, the only Board member who was running against Feury for the chairmanship, is expected to replace Feury during elections next week.

The turn of events left those who know Feury in shock and disbelief. “None of this makes sense to me,” said Rita Kessler, the Board’s longtime district manager, choking back tears. “Nora doesn’t deserve this … after all the good she’s done for the Board and everyone in her life.”

The Archdiocese fired Feury and her financial director, Ruth Ramos, last month because they said the two nearly tripled their salaries by pocketing funds from the agency’s operating budget. While Feury and Ramos were slated to make $90,000 and $60,000, respectively, they brought home $250,000 and $180,000 annually for at least three years.

“A great deal of confidence was put into them,” said Joseph Zwilling, an Archdiocese spokesperson. “We feel that this kind of deception is a betrayal of that trust and the children that they were serving.”

According to Zwilling, federal officials discovered the discrepancies earlier this year during an audit of the Little Angels Head Start program, which serves hundreds of low-income Bronx and Manhattan pre-school children. Auditors visited the program last February as part of a national investigation into the salaries of Head Start managers, according to Steve Barbour, a spokesperson for the federal Administration for Children and Families (ACF), which oversees Head Start. Caps were placed on salaries for the program last year after a report documented that some directors made upwards of $175,000.

After examining four years of records, auditors found that Feury and Ramos had paid themselves out of a general administration budget line, which was not itemized. The Archdiocese’s auditors had previously overlooked the discrepancy, according to Zwilling.

Earlier this year, the federal Government Accountability Office discovered rampant mismanagement among Head Start programs nationwide. Over two-thirds of agencies were not compliant with financial rules in 2000, and over half were still not compliant at a later review. Last month, the federal Head Start director was fired in the midst of charges of fiscal mismanagement.

Barbour said ACF is continuing to work with the Archdiocese to sort out Little Angels’ issues. A spokesperson for the federal Department of Health and Human Services wouldn’t confirm or deny whether they were considering further action. Zwilling, however, seemed confident that a criminal investigation would take place.

But the ramifications have already begun. Feury, 69, was fired at the beginning of last month after 40 years at Head Start. After the issue was first reported on WABC-TV two weeks ago, Bronx Borough President Adolfo Carrión, who oversees the boards, spoke to Feury. “It was decided … that she step down as chairperson of Community Board 7 during this investigation,” said Carrión in a statement.

Feury formally announced her resignation as chair during an executive committee meeting last week. Usually feisty, Feury seemed subdued and sad, according to Kessler, who is close with Feury.

Feury did not return messages seeking comment, but is resisting the charges, according to Kessler. “She doesn’t think it’s fair,” Kessler said. “I know the fine job she’s done for the Archdiocese.”

Karen Argenti, the Board chair before Feury was elected, also thought she handled the large-scale Head Start program well. “She has been a credit to her community,” said Argenti, who has known Feury for decades. “I would be surprised if she stole that money.”

Current Board members, even those who sometimes disagreed with Feury, also expressed disbelief. “It doesn’t make sense,” said Andrew Laiosa, a longtime board member. “On a personal level, I really feel for her.”

Kessler thought that Feury would remain on the Board, but Feury might have to step down since she no longer lives or works in the area. The City Charter requires that members work, live, or have a “significant interest” in the district they represent. Feury moved from Bedford Park to Riverdale several years ago. But she was able to stay on the Board because one of the Head Start programs she ran operates in the former Mosholu Jewish Center on Hull Avenue in Norwood.

Ramos, who was also a Board member, had only served on the Board for about a year. She has had persistent health problems, and will probably resign, according to Kessler. Most members didn’t have a clear impression of Ramos. Sandra Erickson, who sat on the executive nominating committee with her, said Ramos participated in those discussions.
Faulkner remembers seeing Feury and Ramos leave together after Board meetings.

Leadership changes

The controversy comes at the precise moment when some members were looking to change the Board’s leadership. Last month, Faulkner and Hector Lopez, another member, decided to run against Feury and 1st vice chair Sallie Caldwell, respectively. Now that Feury has stepped down, Faulkner faces no opposition for the post.

“It’s all happening so quickly,” said Faulkner, 52, who is reeling from the news.

A 20-year area resident, Faulkner, who was appointed to the Board in 2002, had begun campaigning for the chairmanship, but was a long shot against the powerful Feury. Most members had elected to keep the incumbent slate during initial nominations last month.

Faulkner, who lives on Sedgwick Avenue, was judicious about the situation. “On the one hand, it’s a personal tragedy,” he said. “But I have to be honest, I’m excited about moving the Board forward.”

Some members are also eager for that prospect. “I’m very pleased to see there is another list of candidates for the Community Board to choose from,” said Lowell Green, a member.

But it will take time for Faulkner to forge his own path, as Feury has run the Board for many years. “He will have a lot to learn,” Kessler said. “We’ll help him through it.”

Faulkner says he hopes to develop strategic plans for the area, and increase the Board’s accessibility in the community. But first, he wants the Board to heal. “The theme for us is to try and unify, and then move forward,” he said.

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