Feds Charge Exodus Founder and Adams Fundraiser With COVID Hotel Corruption Scheme
A Taxpayer-Funded Program Turns into a Fraud Conspiracy
A taxpayer-funded program to house incarcerated people released from Rikers in hotels during the COVID-19 pandemic became an elaborate fraud conspiracy in which the founder and former CEO of Exodus Transitional Community, Julio Medina, pocketed millions of dollars in bribes and kickbacks, Brooklyn federal prosecutors charged Thursday.
Medina, Dantzler, and Hu Charged with Federal Felonies
Medina, Christopher Dantzler, the owner of an unlicensed security firm Exodus hired to provide security at the hotels, and Weihong Hu, owner of two hotels where Exodus placed the inmates when they were released from Rikers and upstate prisons, were charged with a wide variety of federal felonies.
Hu’s Ties to Eric Adams
Hu has raised thousands of campaign dollars for both former Mayor Bill de Blasio and his successor, Eric Adams. The Exodus inmate hotel program was awarded via a no-bid contract in an emergency housing program under de Blasio at the start of the pandemic and expanded by Adams, with more than $120 million in public funds steered to Exodus.
Kickbacks and Bribes
"Through kickbacks and bribes, the defendants…capitalized on the COVID-19 crisis and exploited the Emergency Housing Program by engaging in a corrupt scheme to line their own pockets with millions of dollars intended to protect the public," a 17-page indictment unsealed Thursday by Brooklyn U.S. Attorney John Durham alleged.
Medina’s Alleged Misuse of Public Funds
Under Medina’s direction, Exodus paid out $12 million in public funds to Hu’s hotels and another $17 million to a construction firm that she repurposed to be a catering company that provided meals to the program participants, prosecutors state in their court filing.
In return, Medina received millions in bribes and kickbacks from both Dantzler and Hu, including cash, help with Medina’s home mortgage, financing on a $107,000 luxury vehicle, a townhouse in Washington Heights worth $1.3 million, and a home upstate worth $750,000. The true ownership of the homes was concealed by co-conspirators, according to prosecutors.
Indictment Alleges Medina’s Misdeeds
Medina, Dantzler, and Hu all pleaded not guilty Thursday afternoon. Medina was released on $250,000 bond. Dantzler was re-released on $750,000 and ordered to surrender firearms. Hu was released on a $20 million bond and had her passport seized.
The CITY’s Reporting Exposes Abuses
THE CITY first reported on problems with Exodus’ finances in 2022, highlighting how the original no-bid contract amount had skyrocketed and flagging that one of the firms providing security at Hu’s hotel in Fresh Meadows, Queens, did not have a license.
After THE CITY’s Reporting, Medina Resigns from Board of Correction
After THE CITY’s reporting, Medina resigned as a member of the Board of Correction, the oversight committee that monitors Rikers Island.
The Indictment’s Allegations
The indictment alleges Medina passed on the costs of the bribes and kickbacks to taxpayers by submitting inflated invoices to the Mayor’s Office for Criminal Justice for services allegedly rendered by Hu’s catering firm and Dantzler’s security company.
Medina also threatened his co-conspirators, demanding they limit communications once the investigations began.
Conclusion
The indictment highlights instances of alleged bribery that appeared to be particularly brazen, including a series of security camera video stills showing hotel owner Hu removing a bundle of cash from her wallet, placing it in an envelope, and handing it to Medina – a day after Exodus cut two checks worth a total of $187,600 for a Hu-associated catering business.
Frequently Asked Questions
- Who is Julio Medina?
- Julio Medina is the founder and former CEO of Exodus Transitional Community.
- What is the Exodus inmate hotel program?
- The Exodus inmate hotel program is a taxpayer-funded program to house incarcerated people released from Rikers in hotels during the COVID-19 pandemic.
- Who is Weihong Hu?
- Weihong Hu is the owner of two hotels where Exodus placed the inmates when they were released from Rikers and upstate prisons.
- What is the alleged scheme?
- The alleged scheme involves Medina, Dantzler, and Hu engaging in a corrupt scheme to line their own pockets with millions of dollars intended to protect the public.
- Who is Eric Adams?
- Eric Adams is the current Mayor of New York City, who expanded the Exodus inmate hotel program.
- What is the alleged motive behind the scheme?
- The alleged motive is to capitalize on the COVID-19 crisis and exploit the Emergency Housing Program for personal gain.
