From left to right: Edward Caban, Sheena Wright, Timothy Pearson, Phil Banks.
Photo-Illustration: Intelligencer; Photos: Getty
On September 4, federal agents fanned out across the city with search warrants and subpoenas, seizing electronic devices belonging to at least half a dozen New York City officials, including top aides to Mayor Eric Adams and the senior leadership of the NYPD. Among the targets: First Deputy Mayor Sheena Wright; her fiancé, David Banks, the city’s schools chancellor; Phil Banks, the deputy mayor for public safety; their brother Terence Banks, a consultant; and Tim Pearson, a mayoral adviser with significant influence within City Hall.
The Feds also seized devices belonging to NYPD Commissioner Edward Caban, his brother, his chief of staff, and some precinct commanders in Manhattan. The searches were first reported by The City. The raids were reportedly part of two separate influence-peddling investigations by federal prosecutors at the Southern District of New York, though the full scope of the probes remains unclear, and so far no one has been charged.
The raids continue to reverberate. On September 12, Caban resigned as police commissioner. Just days after he stepped down, City Hall counsel Lisa Zornberg submitted her own resignation in a stunning development that has only raised more questions. And now, the head of the city’s aslyum seeker operations, who works closely with Pearson, has been subpoenaed. Below is what we know about all the investigations into New York City officials so far.
Edward Caban officially resigned from his role as NYPD commissioner on September 12 after his name emerged as part of an ongoing federal inquiry involving multiple NYPD officials in a corruption investigation regarding the department’s nightclub enforcement, per NBC New York and the New York Post. Both the SDNY and the IRS’s Criminal Investigation division are reportedly involved in the effort.
In a letter to the members of the NYPD, Caban said that recent news has “created a distraction” for the department. “I hold immense respect and gratitude for the brave officers who serve this department, and the NYPD deserves someone who can solely focus on protecting and serving New York City, which is why — for the good of this city and this department — I have made the difficult decision to resign as Police Commissioner,” he wrote.
In a brief address, Adams confirmed that he has accepted Caban’s resignation, praising him for his 14 months of work and attributing a drop in citywide crime to his leadership. “He concluded that this is the best decision at this time. I respect his decision, and I wish him well,” he said. The mayor announced that he is appointing Tom Donlon, the former director of New York’s Office of Homeland Security, as interim commissioner, calling him an “experienced law-enforcement professional.” A little over a week after he was tapped for the role, authorities executed a search warrant on Donlon’s residences. It’s not yet clear that this latest search is related to these other ongoing probes.
As part of the investigation, the FBI seized electronic devices from Caban and his twin brother, James, earlier this month. Caban is reportedly close to Mayor Adams and took over as the police department’s first Latino commissioner in 2023, following the abrupt exit of Keechant Sewell, the first woman to lead the department. James Caban is a former NYPD cop with what the New York Post describes as a “checkered past” who did consulting work for New York nightclubs. Per NBC New York:
Several sources tell NBC New York federal investigators want to know if James Caban profited from his ties to his powerful brother and the NYPD. Specifically, the investigation is looking into if James was paid by bars and clubs in midtown and Queens to act as a police liaison, and if those clubs were then afforded special treatment by local precincts, the sources said. Other questions being investigated are if officers were asked to crack down harder on clubs that did not do business with the commissioner’s brother or if promotions were given to officers who played along with the potential scheme, according to sources.
Calls for Edward Caban’s resignation came from all sides of the political spectrum, including from progressives like City Councilmembers Lincoln Restler and Tiffany Cabán (no relation to Edward) and from the traditionally conservative New York Post editorial board. The New York Times reported that City Hall was seeking Caban’s resignation behind the scenes, but Adams later denied this to the press just one day before news of the commissioner’s impending exit went public. Previously, Caban himself described the reports as “false rumors” to CBS New York.
The Daily News reports that other NYPD officials also had their devices seized on September 4:
Sources also told the News that phones were confiscated from officers in the 10th Precinct, which includes nightlife-heavy Chelsea and Hell’s Kitchen. Assistant NYPD Chief James McCarthy, who oversees operations for the Manhattan South district that includes the 10th Precinct, got his phone taken by the Feds, as well, as did Raul Pintos, Commissioner Caban’s chief of staff, the sources confirmed.
According to NBC New York, the SDNY and FBI are also looking into possible dealings between City Hall and Terence Banks, a former Metropolitan Transit Authority official who now operates a consulting firm, the Pearl Alliance. Investigators are said to be investigating alleged bribery involving Terence Banks’s firm and clients, who later received business contracts from the city government, per the Times. The Daily News reports that none of the employees of the Pearl Alliance were registered as lobbyists, including Banks.
Terence’s brothers, Phil and David Banks, form their own sort of internal administration within City Hall, as Errol Louis has written. Phil, a former chief of the police department, stepped down in 2014 after being named as an unindicted co-conspirator in an NYPD corruption case. Adams nevertheless tapped him to be the deputy mayor for public safety, from which position he practically supervises the department. David, who oversees the nation’s largest school district, is engaged to First Deputy Mayor Sheena Wright.
Tim Pearson also reportedly had his phone subpoenaed. Pearson served in the NYPD with Adams for decades and is said to wield a great deal of influence with the mayor. One former official described him to Politico last year as “without a doubt the most powerful person in City Hall besides the mayor himself.” Recently, he has been the center of controversy after facing a series of lawsuits alleging sexual harassment and retaliation against former subordinates. He was also under investigation by the city for an altercation last year in which he was accused of getting into a physical encounter with security guards at a migrant shelter. The Times reported this week that Pearson later allegedly threatened the guards, who were arrested following the incident, saying they could lose their jobs.
On Friday, federal prosecutors issued a subpoena to Molly Schaeffer, the director of the city’s office of asylum seeker operations. The Associated Press reports officials are seeking testimony from Schaeffer, and did not seize her electronic devices. In her current role, Schaeffer works alongside Pearson, who has been tasked with handing out city contracts related to migrant shelters.
Though the mayor has not been personally implicated, the people targeted by federal investigators this week are among the closest to the mayor, both politically and personally.
“Investigators have not indicated to us the mayor or his staff are targets of any investigation. As a former member of law enforcement, the mayor has repeatedly made clear that all members of the team need to follow the law,” Lisa Zornberg, the mayor’s chief counsel, said in a statement.
“Whatever information that’s needed, we’re going to turn it over, and I’m going to continue to be the mayor of the City of New York,” Adams told reporters on Thursday, September 5, after the searches became public. He continued to try to keep his distance from the probes the next day:
During the weekend following the raids, Adams surrounded himself with political supporters, attending services at two Black churches in Brooklyn. Speaking from the pulpit to one congregation, the mayor compared himself to the biblical figure Job. “Job lost it all, and even his wife questioned him. ‘Where’s your faith? Where’s God now?’ His friends rebuked him,” he said, per the Times.
Adams fielded countless questions on the probe and the involvement of his inner circle from reporters on Wednesday. Asked if he still had confidence in Caban’s ability to lead the department, Adams declined to defend him specifically. “I have the utmost confidence in the New York City Police Department,” he said. Days later, Caban would submit his resignation.
The mayor acknowledged having a long relationship with the Banks family but said, “I hold them to the same standards that I hold myself to.” He said he was less familiar with Caban’s brother. “I don’t know James Caban that well. I know he’s the brother of the commissioner, and we exchange pleasantries when we see each other, as I do with everyone,” he said.
Caban stepping down from the NYPD was just the beginning of the fallout from the federal probes. Lisa Zornberg, Adams’ chief counsel, submitted her own resignation late Saturday evening after initially issuing a statement in defense of her client in the wake of the raids.
In a letter to Adams, Zornberg wrote, “It has been a great honor to serve the city. I am tendering my resignation, effective today, as I have concluded that I can no longer effectively serve in my position. I wish you nothing but the best.”
News reports suggest that Zornberg’s departure after more than a year serving City Hall was due to Adams declining to take her advice on how to combat the increasing scrutiny of his administration. The New York Post reports that the chief counsel had advised Adams to fire aides at the center of the most controversy including Phil Banks, Tim Pearson and Winnie Greco, his City Hall’s director of Asian affairs who has been subjected to searches in connection to another federal inquiry. The Times reported further that Zornberg wanted Adams to fire all five officials whose devices were seized in addition to Greco, likely including Sheena Wright and David Banks.
Adams downplayed this reporting to members of the media on Tuesday, saying only he and Zornberg were involved in the discussion about her departure. “And unless you were in that conversation, I don’t know how any people can say what’s the reason that she left or didn’t leave.,” he said. “So your speculations and your stories is based on your analysis and the noise that you’re hearing. No one was on that conversation but the two of us.”
According to multiple reports, the new searches appear to be unrelated to the U.S. Attorney office’s ongoing inquiry into the links between Adams’s 2021 mayoral campaign and Turkey. Last month, Adams and his campaign committee were served with grand-jury subpoenas in connection with that inquiry. Specifically, prosecutors are said to be looking into whether Adams’s campaign conspired with the Turkish government to direct illegal foreign donations into its coffers. They’re also reportedly investigating whether Adams, who has long boasted of his relationship with Turkey and the Turkish community, received free flight upgrades while traveling on Turkish Airlines.
That investigation first became public knowledge after the FBI raided the home of Brianna Suggs, a top fundraiser for Adams, last November. On the same day, agents raided the home of Rana Abbasova, another City Hall aide who worked in the mayor’s office on international affairs. (Abbasova is now cooperating with the authorities.) That same month, Adams himself was stopped on the street by FBI agents who had a search warrant for his electronic devices, which were seized and later returned to him.
A few months later, in February, FBI agents also raided homes owned by Winnie Greco, Adams’s director of Asian affairs, as well as the New World Mall in Queens, where Greco hosted several campaign events for Adams when she worked as a fundraiser for his mayoral campaign. Greco was temporarily put on leave but has since returned to work for City Hall.
The growing legal entanglements around Adams and his administration are destined to become a major point in the upcoming mayoral race. Last Thursday, Scott Stringer, one of several Democrats running against him, criticized the mayor for the company he keeps.
“Eric Adams ran on curbing chaos and disorder, yet there is nothing more chaotic than a mayor distracted by his inner circle getting raided by the Feds. You can’t clean up this city’s problems when your own house is a mess,” Stringer said.
Comptroller Brad Lander, who recently announced his own primary challenge against Adams, said, “Amidst an unending stream of stories about the Adams administration being raided and investigated by federal law enforcement, it is clear that New Yorkers are not getting the steady leadership we deserve.”
Zellnor Myrie, a Brooklyn state senator who launched a primary bid, said following Caban’s resignation, “As our city’s housing shortage worsens and the cost of living rises, New Yorkers deserve steady, focused leadership from City Hall — rather than constant turnover and distractions.”
State Senator Jessica Ramos of Queens, the most recent addition to the race, explicitly referenced Adams’s legal troubles in her announcement video, airing clips of news reports about the federal investigations. “You never have to wonder who I’m working for or who’s paying me,” she said. “We need to bring that trust back to City Hall.”
Criticism of the ongoing controversy surrounding Adams and his inner circle extends beyond his current challengers. After Caban stepped down, Public Advocate Jumaane Williams, a longtime critic of Adams, said in a statement that New Yorkers have “little trust in the administration, and little information from the mayor to help restore it.”
This post has been updated throughout.
