Earlier today in Brooklyn federal court, Lori Zeno, the former executive director of a Queens-based legal services non-profit, 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, as well as restitution and financial 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.
According to court documents, Zeno co-founded the organization that provided legal aid and community support 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, prosecutors say Zeno and Ruhani embezzled hundreds of thousands from the organization for personal use—including foreign trips, high-end shopping, expensive meals, luxury apartment rent, electronics purchases such as an 85-inch television, food deliveries, designer handbags costing over $4,000 each, among other expenses. They allegedly disguised personal expenditures as business costs when seeking approval from the organization.
Zeno also arranged jobs at the organization for relatives or associates connected to Ruhani who performed little or no work—including hiring another woman married to Ruhani into a fictitious “health and wellness” program with a $60,000 salary. The scheme included submitting altered lease documents so more than $39,000 could be reimbursed by the organization for penthouse apartment rent while concealing Zeno’s involvement.
Due to these actions by Zeno, 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 unless proven guilty.
The case is being prosecuted by Assistant U.S. Attorneys Russell Noble and Sean M. Sherman from the Public Integrity Section with support from Paralegal Specialists Johnson Peow and Daniel Arakawa.
The U.S. Attorney’s Office for the Eastern District operates as the federal prosecutor’s office covering Brooklyn, Queens, Staten Island, Nassau County, and Suffolk County. It handles federal crime prosecutions—including cases like this one involving misuse or theft from federally funded organizations—and represents civil matters across its jurisdiction through offices located in Brooklyn and Central Islip (official website). The office also supports victims’ assistance programs within its region (official website).
Lori Zeno is age 65 from Garden City, New York.
E.D.N.Y Docket No.: 25-CR-182 (S-1) (RPK)
