The corruption at the Gloria Wise Boys and Girls Club in the Bronx included the theft of nearly $300,000 from the group’s operating budget to pay for personal cars, home improvements, and other expenses, according to a report released by the Department of Investigation yesterday.

The state attorney general’s office yesterday morning arrested two of the men responsible for the thefts. They pleaded guilty to several felony charges. The former executive director of the group, Charles Rosen, 63, and the deputy executive director, Jeffrey Aulenbach, 46, pleaded guilty to charges of grand larceny in the third degree and obstructing government administration in the second degree. Mr. Rosen also pleaded guilty to forgery in the second degree. Sentencing is scheduled for December 6.

The DOI report comes nearly two years after the department began an investigation into the not-for-profit group, which provides services to senior citizens and youths at Co-Op City in the Bronx. Until June 2005, when the Department of Investigation substantiated that the group had mishandled city money, Gloria Wise received about $9 million annually in contracts with city agencies.

The investigation initially found that a fund-raiser for the group, Evan Montvel-Cohen, had improperly taken $875,000 from the operating budget to help fund the start-up Radio Free America, which eventually became the liberal radio station Air America. The city agencies subsequently cancelled their contracts with the group.

Including a salary that rose to $249,610 by 2004 from $109,477 in 2000, Mr. Rosen took more than $69,000 from accounts set up for fictional after-school and athletics groups. Mr. Aulenbach, who received a salary of $185,217 in 2004, took more than $87,000 from the accounts set up for fictional groups. Three other group leaders, Lorraine Corva, Sinohe Terrero, and Ibis Ozoria, also took money improperly, according to the department’s report.

Investigators also disclosed yesterday that in order to pass a health department audit, Gloria Wise administrators falsified documents to show that children had the necessary vaccinations to be at the pre-school. The Department of Investigation commissioner, Rose Gill Hearn, called the “disgusting” act a danger to the children’s health.

The new executive director of the Gloria Wise Boys and Girls Club, Frederick Lewis, 56, said the group replaced all the board members and about 90% of the staff. The group is planning to file civil lawsuits against the five leaders to recover the $290,000 they stole.

“It’s our desire to put these investigations behind us, and get certified by the city to receive grants again,” Mr. Lewis, a former chief of staff for Council Member Larry Seabrook, said.

Of the corruption, he said there was no single determinant: “It seems like it was ego and power. It was bad decisions from a group out of the ‘Ocean’s 11′ movie.”

One of the worst results of the scandal, former board members and community members said, is that Gloria Wise’s name was dragged through the dirt.

“She did so much for the community. She gave up her salary for the kids,” a former executive committee member of the group who resigned in July, Jeanette Graves, said. “To have this scandal carry her name, that really bothers me.”

Ms. Wise put Mr. Rosen in charge of the organization in 1992 when she became terminally ill. She died the following year.

Mr. Rosen is known for his lead role in a rent strike at Co-op City in 1975. Ian Frazier featured him prominently in a New Yorker profile of Co-op City published June 26.