Charity Founder Embezzled Millions and Spent on Lavish Meals, U.S. Says

The head of a charity called Modest Needs was charged Tuesday with embezzling $2.5 million to rent a Columbus Circle high-rise, have cosmetic surgery and dine regularly at some of Manhattan’s most expensive restaurants.

The charity executive, Keith Taylor, was accused in a federal complaint of siphoning money donated through the charity’s crowdfunding platform into personal accounts, ducking more than $1 million in taxes and creating a fictitious board of directors populated with the names of unknowing acquaintances.

“Keith Taylor falsely claimed that donations to his charity would help working families with unexpected expenses that put them at risk of homelessness,” Damian Williams, the U.S. attorney for the Southern District of New York, said in a statement. He added that instead the defendant had “defrauded the charity’s donors and unconscionably took money from the pockets of those most in need.”

Mr. Taylor, 56, was released from custody Tuesday without having to post bail. Brian Ketcham, Mr. Taylor’s lawyer, said Tuesday evening that his client denies the charges and intends to clear his name.

Modest Needs, which Mr. Taylor founded in 2002, claims to provide “emergency grants to low-income workers who’re at risk of slipping into poverty,” according to its website. In 2009, Mr. Taylor told CNN he got the idea for Modest Needs after reflecting on a small but significant act of kindness that helped him pay his rent after a costly car repair. Sometimes, he said, $10 or $20 can help people make ends meet.