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Adult Home Residents Win Victory Over Headhunter
MFY to Launch New Lower Manhattan Justice Project

Adult Home Residents Win Victory in “Headhunter” Case

In September 2006, MFY and Patterson Belknap Webb & Tyler LLP filed suit in federal court on behalf of one former and three current elderly and mentally disabled adult home residents. The lawsuit alleged that they were exploited by Blossom Reyes, a ³headhunter² who receives fees for placing people in adult homes. The suit charged that in addition to pressuring people into inappropriate placements in exchange for money, Reyes and her associates also stole more than $40,000 from three of the resident plaintiffs. Three of the four plaintiffs reside at the New South Shore Manor Adult Home, which the suit charges actively participated in the scheme to steal residents’ funds.

MFY and Patterson settled this lawsuit for monetary damages and injunctive relief in October 2007. Each of the four plaintiffs received a significant amount of money, and the defendants have agreed to comply with extensive injunctive relief. New South Shore Home for Adults has agreed to stop paying placement fees to people who identify individuals for placement at the home. Blossom Reyes, Gabriel Reyes and Healthease Ltd. have agreed to forever cease operating or providing services of any type in New York State to people with any mental or psychiatric disabilities. The vast majority of the monetary settlement has been placed in a special needs trust for the plaintiffs so that they can use the monetary settlement to pay for expenses that are not covered by government benefits. The plaintiffs have expressed excitement about being able to purchase warm clothes, to buy formal clothes for religious events, and to travel. We are continuing to provide information to the Office of the New York State Attorney General in support of its investigation into whether criminal charges should be filed against Ms. Reyes.

See MFY Lawsuit Exposes Headhunting Racket In Adult Home Industry

MFY to Launch New Lower Manhattan Justice Project
MFY Legal Services, Inc. will expand services to low-income residents and workers in Lower Manhattan beginning in 2008, thanks to a grant from the Lower Manhattan Development Corporation (LMDC). The new Lower Manhattan Justice Project will provide advice, counsel and representation to residents on housing, public benefits, consumer, access to health care, and other civil legal issues. The Project will also provide community-based legal education to residents and workers and will work with community-based organizations to address neighborhood needs. The project will also provide assistance to low-wage earners who work in the area, particularly to immigrants who . In addition to providing assistance to residents and workers, the Project will work to preserve the diversity of Lower Manhattan by helping to stabilize low-income areas, particularly the Lower East Side and Chinatown.

The project is funded by a grant from the Community Enhancement Fund of the Lower Manhattan Development Corporation. Grants totaling $37 million were awarded to 33 non-profit organizations in November 2007.

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