A Manhattan judge disbanded the controversial United Homeless Organization calling it a sham, but its industrious alumni are still soliciting donations on the streets.
For decades the UHO employed an army of street hustlers that collected loose in change in water jugs with the endless chant of “Help feed the homeless.”
But, in actuality the entire network just lined the pockets of the solicitors of UFO founder Stephen Riley and director Myra Walker, according to a lawsuit filed last November by New York Attorney General Andrew Cuomo.
Both Riley and Walker missed numerous court dates throughout the past year.
Judge Barbara R. Kapnick, finally ruled that the UHO must be disbanded and further banned Riley and Walker to ever engage in non-profit work again.
“The Court’s judgment will permanently prevent UHO, Riley and Walker from exploiting the trust and good will of New Yorkers and visitors to New York City,” said Cuomo. “This organization’s bad behavior should not undermine the public’s willingness to donate to legitimate charities.”
Still, numerous alumni of UHO are still on the streets doing the same scam.
One alum, Cardel Clark, even helped found a “newspaper” that he hands out while soliciting from Times Square.
He told The Post they are now following all laws, but called Cuomo’s lawsuit “unjust and unfair.”
A source at the attorney general’s office said it is monitoring the UHO offshoots.
Riley and Walker took big cuts of the money to fund personal shopping sprees at the GameStop, Home Shopping Network, Bed Bath & Beyond and P.C. Richard, as well as their monthly cable bills, the legal papers charged.
Riley, a beefy 60-year-old, shamelessly used the donated dollars — which are supposed to be used to “feed the homeless” — to pay his Weight Watchers bills.
The organization, which was run out of Walker’s Bronx apartment, did not return a call for comment.
The scam was strikingly simple, according to Cuomo.
Riley, who founded the UHO in 1985 and got tax-exempt status for it eight years later, charges a flat-rate $15 to $25 to rent a table and empty water jug for a four-hour shift.
“In exchange for paying a fee to Riley, UHO workers received tables and UHO-branded materials, including a tablecloth, apron and plastic jug, and the right to claim membership in UHO,” the suit charged.
They also get a copy of UHO’s New York state incorporation receipt they can use to convince suspicious New Yorkers and trusting tourists that they’re legit.
After deducting the “rent,” the table worker keeps all the donations — up to $80 a shift during peak season.
And with 50 tables around Manhattan — each operating for two to three shifts seven days a week — Riley and Walker could have collected well over $100,000 in fees a year, officials estimated.
“Riley and Walker treated the ‘fees’ as their personal kitty, dipping into them whenever they choose,” the suit says.
Between 2007 and 2008, Riley withdrew $85,000 in cash from a UHO account he allegedly used as his personal piggy bank.
Undercover investigators recorded table workers saying the donated change would help fund soup kitchens, food pantries, shelters and detox centers, the suit said.