June 12, 2025 Queens, NY – In a stunning fall from grace, the former director and founder of a prominent legal services nonprofit in Queens, Lori Zeno, and her husband, Rashad Ruhani, were hit with federal charges Wednesday for allegedly siphoning tens of thousands of dollars from the organization. Queens Defenders, largely sustained by city tax dollars and recipient of millions in government contracts over three decades, is now at the center of a federal fraud investigation that could reshape the landscape of public defense in the borough.

Federal prosecutors unsealed an indictment detailing how Zeno, the longtime leader of Queens Defenders, and Ruhani allegedly leveraged an organizational credit card for lavish personal expenditures. Among the alleged illicit purchases: a luxury getaway to Bali, a cosmetic teeth-whitening procedure, a high-end steakhouse dinner, and other personal splurges.

Adding insult to injury, prosecutors contend the couple fabricated reimbursement requests for personal expenses, including the $6,000-a-month rent for their penthouse apartment, falsely classifying them as business-related.

Ruhani was apprehended Tuesday night at John F. Kennedy International Airport following a trip from California. Zeno's arrest is pending, with arraignment expected at a later date, according to the U.S. Attorney’s Office for the Eastern District of New York.

A Cascade of Consequences: From Boardroom Turmoil to Contract Cuts

The indictment arrives nearly six months after Zeno, her husband, and two other Queens Defenders employees were compelled to exit the organization by its board of directors. While a public explanation for Zeno's ouster was initially withheld, Doneath Powell, the board's chair, disclosed in a January letter to staff that Zeno had been placed on leave due to "information" received by the board.

On Wednesday, Powell confirmed the board's decisive action, stating Zeno was suspended and subsequently terminated after "identifying several irregularities."

The fallout has been immediate and severe. The city swiftly rescinded a significant contract with Queens Defenders, redirecting the $32 million agreement to provide legal services to indigent defendants to Brooklyn Defender Services (BDS). This strategic reallocation means Queens Defenders' criminal defense attorneys are anticipated to transition to BDS by July 1. While Queens Defenders will continue its mandate to represent tenants facing eviction, its criminal defense practice will cease to exist.

"We are deeply saddened by the nature of these allegations against two former employees," Powell stated, emphasizing the organization's commitment to ethical standards. "The alleged actions do not reflect who we are as an organization or the values we uphold. This is a difficult moment, but we are committed to transparency, accountability, and moving forward with strength and integrity."

Zeno remained unreachable for comment on Wednesday. The Mayor’s Office of Criminal Justice (MOCJ), responsible for stripping Queens Defenders of the contract, declined to comment, though a spokesperson previously stated in March that MOCJ had initiated a "financial and operational review after identifying red flags during our routine oversight."

Deep Dive into the Allegations: Luxury Living on Taxpayer Dime

Prosecutors allege the fraudulent spending spree by Zeno and Ruhani occurred between June 2024 and January 2025. This includes over $10,000 for a personal vacation to Bali in September 2024, paid for with a Queens Defenders credit card. Ironically, Zeno referenced the tropical island twice in a March interview when discussing the organization's future, quipping, "I want to fly off to Bali somewhere, and live the rest of my life in peace."

Further alleged abuses of the organizational credit card include:

• Over $1,700 at a luxury resort in Santa Monica, California.
• A $1,300 bill at a high-end restaurant in July 2024.
• A $5,200 purchase at a luxury goods store and a $1,300 purchase at a clothing store, both in August 2024, the month the couple reportedly had a religious wedding ceremony whose legal validity is now questioned by prosecutors.

Ruhani also stands accused of independent misuse of the card, with charges including $2,600 at a steakhouse and $3,300 for an 85-inch smart television and its installation in his Astoria apartment—expenses allegedly covered by Queens Defenders.

In total, the couple purportedly received $39,000 in reimbursements from Queens Defenders for their apartment rent and utility bills. Prosecutors further claim the couple attempted to conceal their alleged fraud by hiring two close associates, including Ruhani's legal wife, Ureka Washington, into non-existent executive assistant roles with minimal responsibilities, tasked with submitting fabricated expense reports.

A Troubled Past: Whistleblowers and Controversies

Despite her long tenure, Zeno’s leadership at Queens Defenders was not without controversy. In 2021, she faced accusations of firing staffers attempting to unionize the public defense group, a move Zeno attributed to job performance issues despite her vocal opposition to unionization.

That same year, Zeno ignited outrage for refusing to close Queens Defenders' offices during a COVID-19 outbreak, initially concealing her own infection before admitting it in an email to staff.

Additionally, Zeno was sued in 2021 by a former employee alleging retaliation after requesting workplace accommodations and claiming an "abusive work environment." This complaint included a shocking anecdote from a 2019 sexual harassment training where Zeno allegedly stated that gossiping about intimate relationships between co-workers was acceptable.

In her March interview, Zeno acknowledged past misconduct accusations, framing them as attempts by others to usurp her position. "There have been many times in the past that people have made accusations because they were convenient for them," she asserted.

This unfolding saga serves as a stark reminder of the critical need for rigorous oversight of public funds, especially those allocated to organizations providing essential services to vulnerable populations. The legal proceedings against Zeno and Ruhani will undoubtedly be closely watched as the Queens legal community grapples with the fallout.

What are your thoughts on the impact of such allegations on public trust in non-profit organizations? Share your perspective in the comments below.