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Mr. Fujimori accused him of making off with $48 million in illegally obtained money.
Councilman Martin J. Golden, who obtained money for the project, said it would rejuvenate an abandoned section of the park.
The city also said it would try to recover any fraudulently obtained money.
The Madison society, which has obtained money to help organize from the William and Flora Hewlett Foundation, has applied for nonprofit status and is hunting for office space.
The firm obtained money from the Small Business Administration and used it to make improper loans to enterprises, some of them affiliated with the Yeshiva of New Square, which as a nonprofit entity was ineligible to receive S.B.A. money.
He obtained money from the Ford Foundation and persuaded John W. Gardner, who had just resigned as secretary of health, education and welfare, to organize and run the nationwide network of community-based councils addressing the problems of urban blight.
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