Earlier today in Brooklyn federal court, Lori Zeno, the former executive director of a Queens-based legal services non-profit organization, pleaded guilty to conspiracy to commit wire fraud. The plea was entered before United States Chief Magistrate Judge Vera M. Scanlon. Zeno faces up to 20 years in prison, along with possible restitution and monetary penalties.
The announcement was made by Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; James C. Barnacle, Jr., Assistant Director in Charge of the FBI’s New York Field Office; and Christopher Ryan, Acting Commissioner of the New York City Department of Investigation (DOI).
“The defendant brazenly betrayed and abused her position of trust as the director of a non-profit, stealing funds that were meant for legal services for disadvantaged clients and members of the community and then spending those funds on luxury goods and expensive vacations,” stated United States Attorney Nocella. “Our Office will vigorously prosecute those who steal public funds and deprive members of our community of crucial resources.”
“Lori Zeno diverted hundreds of thousands of dollars in funding intended for indigent residents to finance her lavish lifestyle. Zeno's abuse of authority deprived vulnerable New Yorkers of critical legal and community services. The FBI is committed to holding accountable anyone who exploits their position for selfish greed, especially those entrusted with supporting the public,” stated FBI Assistant Director in Charge Barnacle.
“This defendant—the founder and leader of a legal services nonprofit—spent hundreds of thousands of dollars intended to provide legal representation for indigent New Yorkers on personal luxuries, including foreign travel, expensive meals, and rent for a penthouse apartment. The City’s nonprofits provide vital public services and today’s guilty plea acknowledges the defendant’s misuse of those precious funds. I thank our law enforcement partners in the United States Attorney’s Office for the Eastern District of New York and the Federal Bureau of Investigation for their commitment to protecting these organizations and their scarce resources from exploitation and fraud. DOI previously has made recommendations to the City to improve compliance and to strengthen oversight of spending at City-funded nonprofits and we urge the City to accept and implement those reforms,” stated DOI Acting Commissioner Ryan.
Court filings indicate that Zeno co-founded and served as executive director at an organization offering legal aid and community support services in Queens. She hired Rashad Ruhani as an employee in October 2023; they later married in a religious ceremony.
Between June 2024 and January 2025, Zeno conspired with Ruhani to embezzle hundreds of thousands from the organization by using its credit cards for personal expenses such as international travel—including more than $10,000 spent on a trip to Bali—and other luxury purchases like an $85-inch television, high-end shopping at retailers such as Ralph Lauren and Neiman Marcus, restaurant deliveries totaling thousands delivered to their penthouse apartment, rent payments exceeding $39,000 using falsified lease documents concealing Zeno’s involvement, as well as hiring individuals close to Ruhani into well-paid but largely fictitious roles within the organization.
Zeno also misrepresented personal expenses as business-related when seeking approval from within her organization. One notable example included charging over $4,000 on an organizational credit card for a Louis Vuitton handbag. Another instance involved hiring another woman married to Ruhani into a directorial role over a non-existent “health and wellness” program at an annual salary of $60,000.
As a result of this conduct, the non-profit lost its contract providing criminal defense services for low-income residents.
Ruhani is scheduled for trial on June 1, 2026; he remains presumed innocent until proven guilty.
The case is being prosecuted by Assistant United States Attorneys Russell Noble and Sean M. Sherman from the Public Integrity Section with assistance from Paralegal Specialists Johnson Peow and Daniel Arakawa.
The U.S. Attorney’s Office for the Eastern District covers federal prosecutions—including cases involving fraud—in Brooklyn, Queens, Staten Island, Nassau County, and Suffolk County through its offices located in Brooklyn and Central Islip (official website). The office handles both criminal prosecutions such as this one involving misuse or theft from non-profits serving vulnerable communities—as well as civil matters—and supports victims through outreach efforts (official website).
Lori Zeno is 65 years old from Garden City, New York.
