CORE Services Group is a Brooklyn-based organization that operates halfway houses, ¹ emergency housing for adults and families, ² homeless shelters, ³ and facilities for runaway and homeless youth ⁴ for more than 3,000 people in New York City. ⁵

Founded as Community First Services in 2005 by Jack A. Brown III, ^{6 7} CORE has received over $800 million of contracts from government agencies including New York City and the Federal Bureau of Prisons (BOP) since 2014. ⁸ Brown is the highest-paid shelter operator in New York ⁹ and CORE has been the subject of a forensic audit and corruption allegations since mayor Bill de Blasio (D) ordered investigations into nepotism, corruption, and spending in New York’s shelter system. ⁹

CORE president and CEO Jack Brown has been called a “politically connected entrepreneur with a checkered history in the halfway-house industry” ¹⁰ by the New York Times. The Times alleged that Brown exaggerated the nature of his military service and falsely claimed to hold a master’s degree in community and economic development. ¹¹

History and Leadership

CORE Services Group was founded as Community First Services in 2005 ^{6 7} by Jack A. Brown III. ⁹ Brown remains the president and CEO of CORE as of October 2021 ¹² and is the highest-paid shelter operator in New York. ¹³

Allegations of Corruption

Prior to founding CORE, Brown was vice president of Correctional Services Corporation, one of the largest private prison firms in the United States, when the company was involved with one of the largest lobbying scandals in New York State history. ¹⁴ Correctional Services Corp. was fined $300,000 for breaking lobbying laws ⁹ for providing free personnel and vehicles to state legislators for contracts, although Brown was never personally charged. ⁹

In 2009 when Brown was vice president of Geo Group ⁹ he suddenly resigned from his post and underbid Geo Group on a $29 million halfway-house contract with Community First Services, although few of the services were provided. ¹⁵ Brown was sued for fraud; the case was settled with no admission of wrongdoing. ¹³

In 2012, the New York State comptroller said Brown showed a “disturbing pattern of ethical violations” when he applied for another corrections contract ⁹ and a deposition revealed Brown changed Community First Services’ name to CORE Services Group to “distance himself from bad publicity.” ⁹

Brown has been called a “politically connected entrepreneur with a checkered history in the halfway-house industry” ¹⁰ by the New York Times. The Times alleged that Brown claimed to be a Gulf War veteran with the Army’s Air Defense Artillery Division in an apparent exaggeration of his military service ¹¹ and falsely claimed to hold a master’s degree in community and economic development. ¹¹

In 2020, the Washington Post published an op-ed by Brown in which he wrote that the “conversation about social and racial justice” has been “years in the making.” ¹⁶

Activities

CORE Services Group operates a total of 40 halfway houses, ¹ emergency housing for adults and families, ² homeless shelters, ³ and facilities for runaway and homeless youth ⁴ for more than 3,000 people in New York City. ⁵ Residents in these facilities have alleged that CORE “doesn’t do anything” to help them find work ⁹ and complained that some units are infested with mice and cockroaches. ⁹

Dealings with Brown-Operated Contractors

In 2020, New York City required CORE to hire a forensic auditor ⁹ after Mayor Bill de Blasio (D) ordered an investigation into nepotism, spending, and conflicts of interest at all nonprofits in the city’s shelter system. ¹⁷

The forensic audit revealed Brown founded a security guard company, a catering company, and a maintenance company to service his facilities and received $520,000 as CEO of these companies in addition to the $529,000 he was paid as director of CORE, ^{17 18} making him the highest-paid shelter operator in New York. ⁹ Financial documents have revealed Brown has also hired family members, ^{19 17} made millions through real estate companies in which he has an ownership interest, and spent $490,000 for perks for his employees, such as gym memberships. ¹⁷

Lobbying Activities

CORE has spent more than $420,000 lobbying in New York State since 2019. ⁹ Brown has built a relationship with Brooklyn Borough president and New York City mayoral candidate Eric Adams (D), and CORE executives and related for-profits have contributed $8,700 to Adams’s 2021 mayoral campaign. ⁹

Funding

CORE has won $800 million worth of contracts to provide shelter and services to the homeless in New York City since 2014 ⁸ and holds $544 million worth of contracts ⁸ with organizations including the Federal Bureau of Prisons (BOP), New York City Department of Homeless Services (DHS), and the New York City Department of Youth and Community Development (DYCD). ⁵ “About Us.” CORE Services Group. Accessed October 9, 2021. https://coresvcs.org/about-us/.[/note]

In 2021 alone, CORE has received $104 million of funding from New York City. ⁹ Since 2017, New York City has paid more than $352 million to CORE for homeless shelters, including at least $32 million to other for-profit entities with links to Brown. ¹⁷

In 2019, CORE received $105,018,559 of program service revenue and $90,000 of grants, ¹⁹ up substantially from $60,741,853 of program service revenue in 2018 ²⁰ and $23,417,602 in 2017. ²¹

Associated Organizations

CORE Services Group affiliate CORE DC ²² received a $60 million contract to operate a halfway house in Washington, D.C. ²³ CORE DC has received at least $4.2 million in other contracts since 2019 and is also operated by Jack Brown. ²⁴

1. “Residential Reentry Center & Alternative-to-Incarceration.” CORE Services Group. Accessed October 9, 2021. https://coresvcs.org/program-item/residential-reentry-center-and-alternative-to-incarceration-programs-2/.
2. “Adult Single & Family Emergency Housing.” CORE Services Group. Accessed October 9, 2021. https://coresvcs.org/program-item/adult-single-family-emergency-housing/.
3. “Shelters for Adults & Homeless Families.” CORE Services Group. Accessed October 9, 2021. https://coresvcs.org/program-item/shelters-for-adults-and-homeless-families/.
4. “Runaway & Homeless Youth Transitional Living Centers.” CORE Services Group. Accessed October 9, 2021. https://coresvcs.org/program-item/runaway-homeless-youth-transitional-living-centers/.
5. “About Us.” CORE Services Group. Accessed October 9, 2021. https://coresvcs.org/about-us/.
6. Community First Services, Inc.” Short Form Return of Organization Exempt From Income Tax. (From 990-EZ). 2005. Accessed October 10, 2021. https://projects.propublica.org/nonprofits/display_990/141925944/2008_01_EO%2F14-1925944_990EZ_200512.
7. “Homepage.” CORE Services Group. Accessed October 9, 2021. https://coresvcs.org/.
8. Aponte, Claudia Irizarry and Honan, Katie. “Homeless Shelter Operator Quits Bid to Dump Trump at Bronx Golf Course.” The City. September 29, 2021. Accessed October 9, 2021. https://www.thecity.nyc/2021/9/29/22701661/trump-bronx-golf-course-homeless-group-quits.
9. Harris, Amy Julia. “Housing Boss Earns $1 Million to Run Shelters Despite a Troubled Past.” New York Times. October 3, 2021. Updated October 4, 2021. Accessed October 9, 2021. https://www.nytimes.com/2021/10/03/nyregion/jack-brown-homeless-nyc-core-services.html.
10. Dolnick, Sam. “A Halfway House Built on Exaggerated Claims.” New York Times. December 12, 2012. Accessed via Web Archive. October 7, 2021. https://web.archive.org/web/20211007100932/https://www.nytimes.com/2012/12/13/nyregion/at-federal-halfway-house-in-brooklyn-a-dubious-operator.html.
11.   Dolnick, Sam. “A Halfway House Built on Exaggerated Claims.” New York Times. December 12, 2012. Accessed via Web Archive. October 3, 2021. https://www.nytimes.com/2012/12/13/nyregion/at-federal-halfway-house-in-brooklyn-a-dubious-operator.html.
12. “About Us.” CORE Services Group. Accessed October 10, 2021. https://coresvcs.org/about-us/.
13.  ^[1] Harris, Amy Julia. “Housing Boss Earns $1 Million to Run Shelters Despite a Troubled Past.” New York Times. October 3, 2021. Updated October 4, 2021. Accessed October 9, 2021. https://www.nytimes.com/2021/10/03/nyregion/jack-brown-homeless-nyc-core-services.html.
14. Dicker, Frederic U. “Ride-Firm Honchos Swear ‘Bribe’ Info on the Way.” New York Post. February 20, 2003. Accessed October 9, 2021. https://nypost.com/2003/02/12/jail-bribe-bigs-set-to-testify/.
15. Dolnick, Sam. “A Halfway House Built on Exaggerated Claims.” New York Times. December 12, 2012. Accessed via Web Archive. October 3, 2021. https://web.archive.org/web/20211003073744/https://www.nytimes.com/2012/12/13/nyregion/at-federal-halfway-house-in-brooklyn-a-dubious-operator.html.
16.  Brown, Jack. “Opinion: Addressing systemic inequalities in D.C. must include getting reentry right.” Washington Post. October 16, 2020. Accessed October 9, 2021. https://www.washingtonpost.com/opinions/local-opinions/addressing-systemic-inequities-in-dc-must-include-getting-reentry-right/2020/10/16/d972b2c8-073a-11eb-9be6-cf25fb429f1a_story.html.
17. Harris, Amy Julia. “Housing Boss Earns $1 Million to Run Shelters Despite a Troubled Past.” New York Times. October 3, 2021. Accessed via Web Archive. October 3, 2021. https://web.archive.org/web/20211003073041/https://www.nytimes.com/2021/10/03/nyregion/jack-brown-homeless-nyc-core-services.html.
18. Hicks, Nolan. “NYC homeless-shelter operator stashed pals on payroll, created lucrative spin-offs: records.” New York Post. October 3, 2021. Accessed October 9, 2021. https://nypost.com/2021/10/03/nyc-homeless-shelter-operator-stashed-pals-on-payroll-records/.
19. “Core Services Group Inc.” Return of Organization Exempt From Income Tax. (Form 990). 2019. https://projects.propublica.org/nonprofits/display_990/141925944/04_2021_prefixes_13-16%2F141925944_201912_990_2021040117852222.
20.  “Core Services Group Inc.” Return of Organization Exempt From Income Tax. (Form 990). 2018. https://projects.propublica.org/nonprofits/display_990/141925944/04_2021_prefixes_13-16%2F141925944_201812_990_2021042718016641.
21. “Core Services Group Inc.” Return of Organization Exempt From Income Tax. (Form 990). 2017. https://projects.propublica.org/nonprofits/display_990/141925944/09_2020_prefixes_11-15%2F141925944_201712_990_2020091717308084.
22. “Formerly Incarcerated People Face a Tough Journey Home.” CORE Services Group. March 26, 2019. Accessed October 9, 2021. https://coresvcs.org/formerly-incarcerated-people-face-a-tough-journey-home/
23. Gathright, Jenny. “Update: D.C. Council Rejects Attempt To Block Ward 7 Halfway House.” Dcist. April 1, 2021. Updated April 6, 2021. Accessed October 9, 2021. https://dcist.com/story/21/04/01/vincent-gray-tries-again-to-block-a-halfway-house-from-opening-in-his-ward/.
24. ^[1] Brown, Jack. “Opinion: Addressing systemic inequalities in D.C. must include getting reentry right.” Washington Post. October 16, 2020. Accessed October 9, 2021. https://www.washingtonpost.com/opinions/local-opinions/addressing-systemic-inequities-in-dc-must-include-getting-reentry-right/2020/10/16/d972b2c8-073a-11eb-9be6-cf25fb429f1a_story.html.