Baldwin woman pleads guilty to stealing money from Brooklyn nonprofit while senior fiscal officer

A Baldwin woman pleaded guilty Friday to embezzling $2.3 million from a Brooklyn-based nonprofit, using the money to pay off credit cards, make car payments and shop online, prosecutors said.

Marcia Joseph, 57, faces up to 20 years in prison following her guilty plea on charges of felony wire fraud in federal court in Brooklyn. Prosecutors said she stole the money while she worked at the nonprofit, which was not named but provided economic assistance, job placement and help for those with emotional, developmental and physical disabilities.

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

She was arrested and charged in October and represented by the Brooklyn Federal Defenders office, which could not be reached for comment.

While working at the organization as the senior fiscal officer, Joseph set up a shell company called Prestige Business Services, which she claimed offered specialized services on behalf of the nonprofit, according to the U.S. Attorney’s office.

“In truth, Prestige performed no work, and was used by Joseph for the exclusive purpose of embezzling more than $2.3 million … over a 16-year period,” prosecutors said.

Joseph admitted in her plea to using the funds to cover $235,000 in mortgage payments, $207,000 in credit card payments, $98,000 in car payments and $45,000 on purchases from Amazon.

She also used the stolen funds to pay for home remodeling, spa treatments, landscaping and other luxury goods, prosecutors said. She withdrew nearly $100,000 in cash and disbursed about $16,000 to friends and family. She also paid herself $50,000 in checks from her separately formed company, authorities said.

“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,” New York City Department of Investigation Commissioner Jocelyn Stauber said in a statement.

By John Asbury

john.asbury@newsday.comJohnAsbury

John Asbury is a breaking news and general assignment reporter. He has been with Newsday since 2014 and previously worked at The Press-Enterprise in Riverside, California.