George Scott, former president of Educational Housing Services, will finally pay the price for sucking millions of dollars out of the very organization he founded more than two decades ago.
The disgraced former president must repay $4.5 million to the organization -- after agreeing to settlement terms with the New York State Office of the Attorney General.
Scott founded EHS in the late 1980's with the mission of providing low-cost housing to students and faculty at institutions of high-learning throughout the city. He embarked on a far less honorable mission in 2002 when he created Student Services Inc., which he used to funnel money from EHS for years.
SSI secured numerous contracts with EHS from 2003-2009 to provide cable, internet and telephone services to residents. The sham organization purchased those services from large telecommunication companies and then proceeded to sell them to EHS at ridiculously inflated rates -- services that EHS could've easily purchased directly from the larger telecommunications companies at much lower rates.
In 2008, EHS and SSI agreed to a multi-million dollar telecommunication services agreement that would've ended in December 2013. SSI will forfeit the remaining $2 million it was expected to earn over the remainder of the contract.More »