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Read more: Homeless beggar jars a sham: AG - NYPOST.comJust in time for the holidays, state authorities are going for the jug-ular -- seeking to banish forever the panhandling pests who clog Manhattan's busiest corners with folding tables and plastic water bottles. State Attorney General Andrew Cuomo filed suit yesterday, charging the United Homeless Organization is a scam run by con artists who pocket most of the change they collect -- hundreds of thousands of dollars a year.
UHO founder Stephen Riley and director Myra Walker take a big cut 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, legal papers charge.
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 lawsuit, filed in Manhattan Supreme Court, seeks a temporary injunction to shut down the UHO, then permanently disband it and keep Riley and Walker from ever taking part in charitable causes.
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. 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 estimate. Undercover investigators recorded table workers saying the donated change would help fund soup kitchens, food pantries, shelters and detox centers, the suit said.
When pressed, Borders, who was collecting from commuters at Penn Station, admitted, "We don't own any shelters or soup kitchens. The money provides us with everyday money."