AG Schneiderman: NYC Puerto Rican Day Parade Fundraiser Misused $1M In Funds

NEW YORK (CBSNewYork/AP) -- New York State Attorney General Eric Schneiderman announced a settlement Thursday with a fundraiser who bilked the New York City Puerto Rican Day Parade of $1 million amid lax oversight from organizers.

According to the attorney general, Carlos Velasquez underreported how much he collected from sponsors.

Schneiderman said Velasquez used money that was supposed to go to scholarships on parade floats instead. Velasquez also used donated airline vouchers for personal trips, the attorney general said.

The settlement will cost Velasquez more than $1 million and bars him from working with the parade moving forward.

The settlement also included the resignations of half the parade board's members, including its president.

Ousted board President Madelyn Lugo was meeting Thursday with state Sen. Ruben Diaz and other clergy officials to discuss the case.

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