Federal prosecutors are investigating whether a New York City councilmember and her sister, a top aide to Gov. Kathy Hochul, accepted bribes or kickbacks tied to city funding steered to a migrant shelter provider, according to a search warrant obtained by The Associated Press.
The March 19 warrant seeks evidence of possible criminal conduct involving Councilmember Farah Louis, a Brooklyn Democrat; her sister, Debbie Louis, Hochul’s assistant secretary for New York City intergovernmental affairs; and Edu Hermelyn, husband of Assemblymember Rodneyse Bichotte Hermelyn, the chair of the Brooklyn Democratic Party.
A spokesperson for Hochul said Debbie Louis was placed on leave last week after the governor became aware of the federal corruption probe. Someone answering a phone number associated with Louis ended the call when asked by the AP about the investigation, and the AP reported messages left for Farah Louis and Hermelyn were not returned.
SEC SCOTT BESSENT: HOW TO STOP FRAUD IN MINNESOTA—AND ACROSS THE COUNTRY
According to the warrant, investigators are examining whether the three received benefits in exchange for actions taken on behalf of BHRAGS Home Care Inc., a Brooklyn nonprofit that historically provided in-home care for sick and elderly clients.
As New York City’s migrant influx intensified in 2022, BHRAGS broadened its work to include emergency shelter operations for asylum seekers and other homeless services. Since then, public records show the group has been awarded more than a dozen contracts worth upward of $200 million from the city’s Department of Homeless Services.
“This is political persecution driven by the far-right, targeting immigrants and the leaders who stand with them,” a political insider tied to Rodneyse Bichotte Hermelyn told the New York Post on Monday. “There are no charges at this time, and the facts will ultimately lead to this case being dropped on its merits.”
DEPUTY AG TODD BLANCHE SHEDS LIGHT ON NEW DOJ FRAUD DIVISION TO ADDRESS ‘INSANE’ PROBLEM
An attorney for BHRAGS Executive Director Roberto Samedy declined to comment to the AP.
The warrant also seeks records of money transfers and communications involving Edouardo St. Fort, a former New York Police Department sergeant who retired in 2023. That same year, records indicate his firm, Fort NYC Security, secured a $3 million contract from the Department of Homeless Services. AP calls and emails seeking comment from St. Fort were not returned.
TRUMP’S FRAUD CZAR NOMINEE TOUTS MINNESOTA BLUEPRINT TO ROOT OUT OBAMACARE FRAUD, SENIOR SCAMS
The warrant’s existence does not mean charges are imminent. It indicates only that federal investigators convinced a judge they had sufficient grounds to search for and seize potential evidence.
The probe lands amid broader scrutiny over how New York City awarded emergency shelter contracts during the migrant crisis, when the arrival of tens of thousands of asylum seekers strained the city’s shelter system and prompted officials under then-Mayor Eric Adams to rapidly expand housing capacity through outside providers.
Some of those arrangements have drawn criticism from watchdogs and political opponents, who questioned the speed, scale and oversight of the contracting process.
FEDERAL PROSECUTOR CALLS NEWSOM ‘KING OF FRAUD’ AS TRUMP LAUNCHES CALIFORNIA CORRUPTION PROBE
The figures named in the warrant are all connected to Brooklyn’s Democratic political establishment, which has been rocked by a series of ethics controversies in recent years.
Hermelyn, who once served as a senior adviser to Adams, stepped down after questions were raised about whether his role as a Brooklyn district leader conflicted with rules barring certain dual government positions. He also went on to advise former Gov. Andrew Cuomo during Cuomo’s unsuccessful mayoral campaign.
The Trump administration, led by fraud investigation czar Vice President JD Vance, has prioritized federal law enforcement investigations nationwide.
Just this week, Treasury Secretary Scott Bessent’s Treasury Department announced it is offering whistleblowers a major financial incentive to help expose fraud, directing would-be tipsters to the Treasury.gov website, telling Fox News on Monday that the administration has already received more than 700 leads.
The Treasury’s whistleblower page says eligible tipsters can receive between 10% and 30% of monetary sanctions collected for successful actions.
While Minnesota fraud among the state’s Somali community has made headlines thus far thanks to independent journalist Nick Shirley’s reporting, Bessent actually praised that state for having some level of transparency that is not permitted in California or New York.
“That’s why that young man, Nick Shirley, was able to go to see the scams, because it was: This is the name of the facility; this is the address; this is how much money they got,” Bessent said. “Oh look, it’s an empty storefront. There’s no one here. New York, California are hiding it.”
The Associated Press contributed to this report.
