$5.5-Million Payment Will End N.Y. Investigation of Student-Housing Foundation

The former president of a foundation that provides housing for New York City college students will pay $4.5-million to settle accusations that he and his wife improperly collected millions of dollars from the foundation through a shell company that handled phone, Internet, and cable-television service in the foundation’s facilities. An investigation by the state attorney general’s office discovered that George Scott, who was president of Educational Housing Services Inc., until last month, had been siphoning money from the foundation since 2003. Members of the foundation’s board will also pay $1-million for neglecting their fiduciary duty, the attorney general’s office announced. The money paid in the settlement will go toward reducing students’ rent and improving amenities in the foundation’s facilities.