Lori Zeno NYC Public Defender Founder Accused of Stealing Funds for Luxury Lifestyle

A Shocking Twist in New York’s Legal Community

One of the founding figures of New York City's public defense system has been charged in a federal fraud case that alleges the misuse of funds meant to serve vulnerable clients. Lori Zeno, a prominent co-founder of the Queens Defenders, and her husband Rashad Ruhani are facing serious allegations of siphoning organizational funds for personal luxuries, including high-end vacations and upscale accommodations.

Prosecutors Reveal Pattern of Financial Abuse

Federal prosecutors from the Eastern District of New York unsealed an indictment accusing Zeno and Ruhani of engaging in wire fraud, conspiracy to launder money, and theft of public funds. Beginning in 2024, the pair allegedly redirected at least $60,000 from the nonprofit to bankroll personal expenses.

According to the indictment, these expenditures included an extravagant vacation in Bali, teeth-whitening treatments, lavish restaurant outings, and rent for a luxury penthouse apartment under the pretense of using it for client defense purposes.

Trusted Legal Advocate Now Facing Legal Action

Zeno co-founded the Queens Defenders in 1996 and had served as its executive director since 2018. In 2023, her reported salary exceeded $400,000. Her husband, Ruhani, officially joined the organization in 2023 as a client advocate. Prosecutors allege that their personal and professional lives soon overlapped, resulting in improper financial decisions involving the nonprofit’s budget.

Earlier this year, Zeno was removed from her leadership role by the board of directors. The decision followed multiple internal complaints from employees over her conduct and leadership practices.

Nonprofit Meant to Serve Justice Now Under Scrutiny

Queens Defenders is one of several nonprofit law offices funded by city, state, and federal sources to represent individuals unable to afford private legal counsel. The organization manages millions in government contracts aimed at ensuring equal access to legal defense.

In March 2025, city officials tasked the Brooklyn Defenders with overseeing the services tied to the Queens Defenders’ $32 million annual city contract. The transition was initiated by the Mayor’s Office of Criminal Justice, amid rising concerns about internal accountability.

Arrest and Legal Proceedings Underway

Ruhani, 55, was arrested at JFK International Airport on Tuesday evening. He is scheduled to appear in federal court in Brooklyn. Zeno, 64, had not been taken into custody at the time of reporting.

Legal representatives for both individuals have not yet provided public statements. Likewise, the Queens Defenders organization has not issued a comment, and city officials are withholding statements due to the ongoing investigation and litigation.

Community Impact and Ongoing Investigation

The allegations have sent shockwaves through the legal aid community in New York, raising concerns over financial oversight within organizations designed to serve the public good. While the investigation is ongoing, the case highlights the importance of transparency, especially in institutions built on trust and justice.

As legal proceedings unfold, the spotlight remains fixed on how trusted leaders in public service are held accountable when the very systems they helped build come under question.