NEW YORK, NY — The founder and former CEO of a Manhattan-based charity that claimed to help low-income families pleaded guilty Monday to embezzling millions in donations to bankroll his high-end lifestyle—including luxury rent, fine dining, and personal expenses—while also evading over $1 million in federal taxes.
Keith Taylor, 58, admitted in Manhattan federal court to wire fraud and eight counts of tax evasion after prosecutors said he stole more than $2.5 million from his nonprofit, Modest Needs Foundation, which he founded in 2002 to support working-class families facing unexpected financial crises. Taylor is scheduled to be sentenced October 15.
Court documents show Taylor used the charity’s bank accounts like a personal slush fund, spending more than $300,000 on rent for a high-rise Manhattan apartment, over $320,000 at restaurants including Per Se, Jean-Georges, and Masa, and more than $100,000 on food delivery apps. He also funneled over $270,000 into his personal brokerage account and used nonprofit funds to pay for electronics and medical bills.
Taylor’s conduct continued even after his arrest in June 2024. Though he claimed to resign from Modest Needs, prosecutors say he kept secretly accessing the charity’s accounts and used its funds to continue covering personal expenses in violation of his pretrial release terms.
To conceal the fraud, Taylor created a fake board of directors—listing a bartender, a friend, and his housekeeper as members—none of whom knew they had been named or had ever attended a meeting.
Federal prosecutors say Taylor also failed to file income taxes between 2017 and 2024, evading more than $1 million owed to the IRS.
Taylor faces a maximum sentence of 30 years on the wire fraud charge because the crime was committed while on pretrial release. Each of the eight tax evasion counts carries a maximum of five years. His ultimate sentence will be determined by the judge.
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Key Points
- Keith Taylor stole over $2.5 million from the Modest Needs Foundation to fund personal luxuries
- He used fake board members to hide the fraud and continued stealing funds after his arrest
- Taylor also evaded more than $1 million in federal income taxes over seven years
Charity boss admits blowing donation funds on luxury rent and NYC fine dining while evading $1M in taxes