New Interim Board For Hale House

Attorney General Spitzer announced today that he has reached an out-of-court agreement with Hale House that gives the troubled charity a new interim board of directors.

The new board will take control of the charity immediately. Later this week, Hale House C.E.O. and President Lorraine Hale will step down from the organization.

"Our goal is to ensure the well being of the children currently entrusted to Hale House, and to restore the legacy of compassion established by Mother Hale," said Spitzer.

Spitzer noted that his investigation into Hale House is continuing and that his office would work with Kroll & Associates, the private firm hired by the charity to conduct an internal review of its financing and programs. As Attorney General, Spitzer oversees all charities and non-profit organizations in the state.

The new members of the board who have agreed serve through September 30 are:

  • Zachary Carter, a partner in the law firm of Dorsey & Whitney. Carter is the former U.S. Attorney for the Eastern District of New York;

  • James Johnson, a partner in the law firm of Morrison & Foerster. Johnson served as Undersecretary of the Treasury in the Clinton administration and as Co-Chair of the President's National Church Arson Task Force;

  • Michael D. Lappin, the President and Chief Executive Officer of the Community Preservation Corporation, a sponsor of affordable housing;

  • Randy Mastro, a partner in Gibson, Dunn, & Crutcher. Mastro is a former Deputy Mayor of New York;

  • Elsie Crum McCabe, the President of the Museum for African Art. McCabe is the former Chief of Staff for Mayor David Dinkins and a former senior litigator with the firm of Shearman & Sterling;

  • Paul Williams, a partner in the law firm of Bryan Cave. Williams is the President of 100 Black Men.

"I have the utmost confidence that this new board, composed of people with strong ties to the community, will be able to shepherd Hale House and its children over the coming months as we seek long-term solutions to its problems," Spitzer said.

The Attorney General's investigation is being handled by Assistant Attorneys General Marla Simpson and Charles Smith, under the direction of the head of the Charities Bureau, William Josephson, and Public Advocacy Chief Dieter Snell.