The chairman of the Manhattan Chamber of Commerce abruptly quit today after he was accused of embezzling more than $2.3 million from a non-profit founded by a shrink who helped lead the sexual revolution.
Jeffrey Bernstein secretly drained the operating account of the Albert Ellis Institute while serving as its president and director of administration, according to court papers filed this morning.
The organization’s suit says Bernstein — who once ran the BurritoVille and Pudgie’s Famous Chicken franchise chains — “misappropriated” the cash “for his personal benefit.”
The Upper East Side institute was founded by Ellis in 1959, shortly after publication of his ground-breaking book “Sex Without Guilt.”
The late head-shrinker — nicknamed “the Lenny Bruce of psychotherapy” for his foul mouth — later became one of the most influential figures in modern psychology for his development of “rational emotive behavior therapy.”
The institute’s Manhattan federal court filing doesn’t directly target Bernstein — who’s described as “insolvent” — but instead charges JPMorgan Chase Bank with breach of contract and breach of duty.
The suit faults the bank for allegedly allowing Bernstein, 61, to make at least 65 unauthorized transfers to accounts he controlled between April 2010 and February of this year.
Institute lawyer David Blasband said officials there “immediately” notified the Manhattan District Attorney’s Office, which declined comment.
Manhattan Chamber of Commerce President Nancy Ploeger said Bernstein had resigned “effective immediately,” adding: “Our board will meet as soon as possible to chart our course going forward.”
Neither Bernstein nor his lawyer returned phone and email messages.
A Chase spokesman declined to comment.