Jay Clayton, U.S. Attorney for the Southern District of New York | Department of Justice
Keith Taylor, the founder and former CEO of Modest Needs Foundation, pleaded guilty to charges of wire fraud and tax evasion in federal court on August 18, 2025. The announcement was made by Jay Clayton, U.S. Attorney for the Southern District of New York. Taylor admitted to stealing millions of dollars in donations intended for low-income families and using the funds for personal expenses.
According to prosecutors, Taylor embezzled more than $2.5 million from Modest Needs since at least 2015. The money was spent on luxury apartment rent in midtown Manhattan, expensive electronics, food delivery services totaling over $100,000, and dining at high-end restaurants such as Per Se, Jean-Georges, Masa, and Marea. Taylor also transferred more than $270,000 from the charity directly into his personal brokerage account.
Taylor founded Modest Needs in 2002 with the goal of providing short-term financial assistance to individuals and families facing unexpected expenses they could not afford. Despite this mission, he diverted donated funds for his own use and continued doing so even after his arrest in June 2024. Prosecutors said that although Taylor had resigned from Modest Needs and was barred from accessing its bank accounts as a condition of pretrial release, he continued to pay for personal expenses with charity funds.
Authorities reported that Taylor concealed his activities by creating a fake board of directors for Modest Needs. He listed acquaintances—including a bartender from Jean-Georges restaurant, a friend, and his house-cleaner—as board members on tax forms and the organization’s website without their knowledge or participation.
From at least 2017 through 2024, Taylor did not file income tax returns or pay taxes on the money he received from the charity. This resulted in more than $1 million in unpaid federal income taxes.
“Keith Taylor preyed on the trust of New Yorkers who gave generously to help struggling families,” said U.S. Attorney Jay Clayton. “Those who use charitable dollars to line their own pockets undermine the work of our many great charities and the special tax status charities enjoy. They must be brought to justice.”
Taylor pleaded guilty before U.S. District Judge Jennifer L. Rochon to one count of wire fraud—which carries a maximum sentence of 30 years due to committing the offense while on pretrial release—and eight counts of tax evasion that each carry up to five years in prison. Sentencing is scheduled for October 15, 2025.
The case was investigated by Internal Revenue Service-Criminal Investigation and Special Agents from the U.S. Attorney’s Office Public Corruption Unit. Assistant U.S. Attorneys Eli J. Mark, Rebecca R. Delfiner, and James G. Mandilk are prosecuting.
Mr. Clayton praised "the exceptional investigative work of Internal Revenue Service-Criminal Investigation and the Special Agents of the United States Attorney’s Office."
