Legal Aid Founder Accused of Embezzlement
The founder of the recently disbanded Queen’s Defender Legal Aid Group is under fire for allegedly stealing over $60,000 from her organization. Lori Zeno, along with her partner Rashad Ruhani, reportedly misused funds for lavish expenses, including a penthouse, a $2,000 meal, and even a getaway to Bali.
Both Zeno and Ruhani purportedly submitted fraudulent claims amounting to tens of thousands of dollars as business expenses, while also misusing company credit cards during investigations led by the FBI and the city’s Ministry of Investigation.
A federal indictment from Brooklyn claims that Zeno “has pilfered tens of thousands of dollars from the organization, enriching herself and others.” The allegations include fraud, theft, and money laundering.
Ruhani was arrested upon arrival at JFK Airport on Tuesday night. Zeno, who was already suspended from her role earlier in January, remains at large.
“We are deeply saddened by the nature of these allegations against the two former employees,” stated Doneath Powell, the board chairman. “These alleged actions don’t reflect our values as an organization. This is a tough situation, but we’re committed to moving forward with transparency and integrity.”
The fraudulent activities are said to have started last summer, coinciding with Ruhani’s promotion to oversee the group’s youth program. Around that same time, Zeno allegedly leased a $6,000 penthouse where they both resided.
Ruhani reportedly billed the organization for $39,000 in rent, claiming the penthouse was used for ‘client defense’ and ‘foster care.’ He even altered a lease refund request to exclude Zeno from being listed as a resident, and continued to submit utility bills for several months thereafter.
The misuse of the lawyer’s corporate credit card led to substantial charges. According to the indictment, one of their earliest fraudulent expenses was $600 for teeth whitening in July 2024.
The couple’s extravagant spending included a $10,000 trip to Bali and over $1,700 at a resort in Santa Monica. Additionally, they charged nearly $4,000 for a pricey dinner at a high-end steakhouse. The duo reportedly spent $10,900 on luxury shopping as well.
Some of these purchases reportedly involved over $3,300 for large televisions and related accessories intended for their penthouse.
Federal officials and the Department of Investigation have declined to comment on the case. Attempts to reach Ruhani’s lawyers were unsuccessful.
Zeno has not responded to requests for comment. However, she mentioned in March that she had long envisioned retiring to Bali. “I’ll see what happens now for Queens defenders that I’m not there,” she had stated. “Hopefully, I’ll be in Bali, living a peaceful life, without needing to know about it.”
