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Federal investigators search private firm that hired brother of Adams deputies as part of NYC corruption probe

Evan Simko-Bednarski, Chris Sommerfeldt and Cayla Bamberger, New York Daily News on

Published in News & Features

NEW YORK — Federal authorities investigating possible City Hall corruption have served a search warrant on at least one employee of SaferWatch, a security app company that hired the brother of two of Mayor Eric Adams’ top deputies as a consultant, the Daily News has learned.

The company is the first publicly identified client of the brother, Terence Banks, to become directly ensnared in the probe, which has already been a factor in the firing of one City Hall employee and the resignation of Police Commissioner Edward Caban.

The identity of the employee of the Florida-based tech firm and the date of the search is unclear, but sources familiar with the probe confirmed investigators seized at least one electronic device while executing the warrant.

SaferWatch is one of nine companies listed as clients of The Pearl Alliance, a government relations firm started by Banks — a former MTA worker and the younger brother of Deputy Mayor for Public Safety Phil Banks and School Chancellor David Banks. Several have financial interests before city agencies run by Terence Banks’ brothers.

The three Banks brothers got their homes raided and electronics seized by the feds last week as part of a coordinated operation that also involved searches at the homes of multiple other top Adams administration officials, including former NYPD Commissioner Edward Caban, who resigned Thursday.

Sources have told The News that last week’s raids were prompted by two separate federal investigations.

The one focusing on the Banks brothers is looking at whether Terence Banks and top Adams administration officials played part in a scheme involving unregistered lobbying and kickbacks on city contracts, according to law enforcement sources. Neither Terence Banks nor anyone at his firm are registered lobbyists.

Neither SaferWatch nor anyone in the Adams administration have to date been accused of wrongdoing.

“It is our understanding that neither SaferWatch nor any of its employees are the target of any investigation,” Hank Sheinkopf, a veteran New York communications consultant hired by the firm, said when asked about the confiscated electronics.

“SaferWatch, as a company and platform, works hand-in-hand with law enforcement agencies, schools and businesses across the country,” he added.

An app company whose flagship product — a public safety reporting app — was tested at five city schools last year, SaferWatch has received more than $67,000 from the city since August 2023, according to public records.

Of that, $46,690 is was paid by the NYPD’s school safety division, which tested the app at five city schools including Queens’ Hillcrest High School, Chancellor Banks’ alma mater.

City records also show SaferWatch received $10,300 from the NYPD’s Technical Assistance Response Unit, which is responsible for surveillance technology.

 

The exact nature of Terence Banks’ work for his clients remains unclear, as he hasn’t disclosed any of his activities in lobbying filings. An attorney for Terence Banks did not return a request for comment.

In addition to working with Banks, SaferWatch also retained registered lobbyists to meet directly with Chancellor Banks and Deputy Mayor Banks while seeking business involving their agencies.

Former City Council Speaker Corey Johnson, as well as his former Council chief of staff Jason Goldman, were hired by SaferWatch to lobby both brothers’ agencies on securing a major contract with the city to provide “panic buttons” for school safety agents.

Detailed daily schedules obtained by The News via a Freedom of Information Law request show Johnson had a meeting with Chancellor Banks on Dec. 7, 2022 about SaferWatch.

City Clerk’s Office records and other schedule entries also obtained by The News showed Johnson met a few weeks later with Deputy Mayor Banks in his Verizon Building office on Jan. 23, 2023 for a lobbying call about SaferWatch.

It’s not clear who else, if anyone, attended those meetings. No one involved in lobbying has been accused of any wrongdoing as part of the probe.

Johnson severed ties with SaferWatch in late 2023, and two sources familiar with the matter said there was no overlap between him and Terence Banks working for the company.

The youngest Banks started The Pearl Alliance in July 2022, while still working at the MTA as a train service supervisor. He retired from that role in April 2023.

Sheinkopf declined to comment when asked when exactly SaferWatch began working with The Pearl Alliance.

The New York Times first reported earlier this week that the ongoing federal investigation into Adams’ administration resulted in electronics being seized from one of Terence Banks’ clients. The Times, however, did not identify that client.

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©2024 New York Daily News. Visit at nydailynews.com. Distributed by Tribune Content Agency, LLC.

 

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