New York City Officials Entangled in Federal Investigation

Subpoena Targets Office of Asylum Seeker Operations Director

New York City’s Office of Asylum Seeker Operations Director Molly Schaeffer was hit with a request for information from federal investigators, an Adams administration source confirmed Friday. The subpoena, which was first reported by the Associated Press, points to widening federal inquiry that’s entangled a stunning number of top officials in Mayor Eric Adams’ inner circle.

Federal Investigation Widens

The investigation, which has been ongoing for several months, is believed to be looking at the city’s contracting process, Adams’ mayoral campaign, and connections to foreign nationals. The exact scope of the investigation is not yet clear, but it has already ensnared several top officials, including the former Police Commissioner Edward Caban and his longtime advisor and confidant Tim Pearson.

Tim Pearson’s Involvement

Pearson, a former NYPD inspector who leads the Mayor’s Office of Municipal Services Assessment, reportedly had his electronic devices seized earlier this month by federal investigators. He worked closely with Schaeffer in his role at the MSA, a newly-created unit under Adams tasked with identifying savings across agencies.

Allegations of Kickbacks

According to allegations laid out in four lawsuits against Pearson filed in recent months, he regularly boasted about seeking kickbacks from city contracts, which he referred to as “crumbs.” In one of the suits, Pearson allegedly said, “Do you know how these contracts work? People are doing very well on these contracts. I have to get mine. Where are my crumbs?”

Response from the Mayor’s Office

Reached by phone Friday, Schaeffer declined to comment on the subpoena, deferring to Deputy Mayor for Communications Fabien Levy. Levy declined to comment on the ongoing investigation but said, “we expect all team members to fully comply with any ongoing inquiry.”

Mayor’s Support for Tim Pearson

At his weekly press briefing Tuesday, Adams doubled down on his support of embattled aide Pearson, who has repeatedly seized headlines over his two-year tenure in the mayor’s office. Adams said, “Tim brought something to the dynamic that I knew we had to think outside the box to resolve the issues. We saved hundreds of millions of dollars because of his analysis and partnership with the other people that it involved.”

Former Chief Counsel’s Resignation

The city’s former chief counsel Lisa Zornberg resigned abruptly last week after she urged the mayor to fire Pearson and was ignored, according to reports in the NYTimes and Politico.

Conclusion

The federal investigation into New York City officials, including Mayor Eric Adams and his top aides, continues to unfold. As more information comes to light, it remains to be seen what the ultimate outcome of the investigation will be. One thing is certain, however: the investigation has already had a significant impact on the city’s government, with several officials entangled in the probe.

FAQs

Q: What is the focus of the federal investigation into New York City officials?
A: The investigation appears to be looking at the city’s contracting process, Adams’ mayoral campaign, and connections to foreign nationals.

Q: Which officials are involved in the investigation?
A: Several top officials, including Mayor Eric Adams, former Police Commissioner Edward Caban, and his longtime advisor and confidant Tim Pearson, are entangled in the probe.

Q: What are the allegations against Tim Pearson?
A: According to allegations laid out in four lawsuits against Pearson, he regularly boasted about seeking kickbacks from city contracts, which he referred to as “crumbs.”

Q: What is the response from the Mayor’s Office?
A: The Mayor’s Office has declined to comment on the ongoing investigation, saying only that they expect all team members to fully comply with any ongoing inquiry.