Federal investigation into City Hall, NYPD ramps up as more phones seized, sources say
NEW YORK (WABC) -- Federal authorities on Friday ramped up their investigation into possible corruption in New York City government, interviewing police officials at a building next to police headquarters and seizing additional phones, sources familiar with the matter told ABC News.
The escalation comes one day after officials confirmed the investigation had already reached into the inner circle of New York Mayor Eric Adams.
Federal prosecutors in Manhattan have declined to disclose details about what they are investigating but sources said one focus involves city contracts and a second involves the enforcement of regulations governing bars and clubs.
Adams on Thursday insisted he was aware of no "misdoings" by anyone in his administration and pledged cooperation with the ongoing investigation. His chief counsel said Adams himself is not believed to be a target. No charges have been filed.
This week, federal agents searched the homes of Deputy Mayor Phil Banks, Deputy Mayor Sheena Wright and Schools Chancellor David Banks.
Schools Chancellor Banks released a statement early Friday saying, "Yesterday was the first day of school for the 1.1 million students and staff of New York City Public Schools, and I remain focused on ensuring they have safe, academically rigorous, and joyful school year. I am confirming that I am cooperating with a federal inquiry. At this time, I cannot comment any further on that matter."
Another Banks brother, Terence Banks, who runs a consulting firm, may have clients that do business with the city. He is also being eyed by federal investigators, although his attorney said he was assured his client was "not a target of this investigation."
Federal authorities also seized phones belonging to Police Commissioner Edward Caban and other NYPD officials. On Friday, sources said investigators sought the phones of additional police officials including precinct commanders in Manhattan.
Caban's family has connections to nightlife. Richard Caban, a former NYPD lieutenant, owned a now-shuttered Bronx restaurant, Con Sofrito. Caban's twin brother, James Caban, a former NYPD sergeant, owned a Bronx apartment building that once had a bar on the first floor named "Twins."
Timothy Pearson, a close adviser to the mayor and retired NYPD inspector, also had his phone subpoenaed. He works for the city's Economic Development Corporation but has wide ranging responsibilities in the administration.
The law enforcement actions this week appear separate from the ongoing investigation by the same federal prosecutors into fundraising in the 2021 mayoral election and the possible influence of the Turkish government.
A separate U.S. Attorney's Office, based in Brooklyn, is looking into an administration official with connections to the Chinese government.
Federal agents have previously searched the homes of several other associates of Mayor Adams, who turned over his own electronic devices to the FBI.
"I think the most important thing that I must do is to send the right message to my team and all the employees in the city, we're going to comply with whatever rules, and we're going to follow the law, and we're going to make sure that whatever information is needed, we're going to turn over that information, and that is what we have been doing since the beginning," Adams said.
Federal officials have previously executed search warrants at the homes of:
- Brianna Suggs, the mayor's top campaign fundraiser
- Rana Abbasova, the mayor's international affairs aide
- Winnie Greco, a special adviser to the mayor and director of Asian affairs
"I wake up every morning with the same feeling, commit yourself to the city, and for the entire years of my life, I follow the rules and procedures," Adams said. "And you know, I'm confident that everything is reviewed. We're going to comply with whatever information that's needed and to make sure that this has come to a completion."
Gov. Kathy Hochul said she will continue working with the mayor as investigations swirl around him.
"I have a job to do, my job is to not speculate, I will let the authorities do their jobs, I have a job to do, which is to continue fighting for the people of New York City and working with the mayor of New York to accomplish what we need to do," Hochul said.
An NYPD spokesperson released the following statement:
"The Department is aware of an investigation by the U.S. Attorney's Office for the Southern District of New York involving members of service. The Department is fully cooperating in the investigation. Any questions regarding the investigation should be directed to the U.S. Attorney's Office."
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