Keith Taylor, founder and former CEO of Modest Needs Foundation, pleaded guilty to defrauding the charity and its donors by misappropriating millions of dollars in donations intended for low-income families. The plea was entered before U.S. District Judge Jennifer L. Rochon, with sentencing scheduled for October 15, 2025.
U.S. Attorney Jay Clayton commented on the case: “Keith Taylor preyed on the trust of New Yorkers who gave generously to help struggling families. 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.”
According to court documents and proceedings, Taylor founded Modest Needs in 2002 as a 501(c)(3) organization using a crowdsourcing model to assist low-income workers with unexpected expenses such as medical bills or appliance repairs.
From at least 2015 onward, Taylor embezzled over $2.5 million from the charity’s funds. He spent more than $320,000 at high-end restaurants in Manhattan and used over $300,000 of donated money for rent on a luxury apartment. Charity funds also paid for electronics, food delivery services totaling more than $100,000, his personal medical expenses, and direct transfers into his brokerage account exceeding $270,000.
Even after being arrested in June 2024 and under conditions that restricted his access to Modest Needs’ accounts pending trial, Taylor continued using charity money for personal expenses including meals and rent.
To conceal his actions, Taylor fabricated a board of directors by listing acquaintances—such as a bartender from Jean-Georges restaurant, a friend, and his house-cleaner—as board members without their knowledge or participation in any meetings.
Between 2017 and 2024, Taylor failed to file income tax returns or pay taxes on income he received from the charity during this period.
Taylor pleaded guilty to one count of wire fraud—which carries up to 30 years in prison due to commission while on pretrial release—and eight counts of tax evasion with each count carrying up to five years imprisonment. Sentencing will be determined by the judge according to federal guidelines.
U.S. Attorney Clayton commended Internal Revenue Service-Criminal Investigation agents along with Special Agents from the U.S. Attorney’s Office for their investigative efforts. The Public Corruption Unit is prosecuting this case through Assistant U.S. Attorneys Eli J. Mark, Rebecca R. Delfiner, and James G. Mandilk.
