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Queens Art Charity Closes Months After Leader Was Attacked With Lye

NEW YORK (CBSNewYork/AP) -- A New York City arts charity whose director was attacked with lye last year has shut down.

The Healing Arts Initiative, of Long Island City, announced Wednesday it expected to declare bankruptcy.

Its director, D. Alexandra Dyer, was attacked last summer after she began investigating missing money at the charity. That led to three arrests and exposed what prosecutors say was a $750,000 embezzlement scheme led by Kim Williams, an accountant who worked at the charity.

Police said Williams gave 20 percent of the illegal money to her friend, Pia Louallen, and then Williams allegedly tried to conceal the crime. Police said Williams then enlisted Jerry Mohammed, who allegedly threw the acid on Dyer in August 2015, to divert everyone's attention away from the theft.

Dyer sued the board in April, claiming its negligence had enabled the thefts.

Last week, the board fired Dyer and her chief financial officer. It said it didn't realize the extent of its revenue problems until this week because the two withheld "crucial financial information.''

"Rent and various other payments are several months overdue, and there is no obvious prospect of making timely repayments on the organization's extensive debts," the company said in a statement.

Dyer says they supplied all information.

The non-profit made art accessible to marginalized New Yorkers.

The organization said it is now working with the New York Attorney General to determine the best course of action for the non-profit.

(TM and © Copyright 2016 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2016 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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