Clifton Park Man Charged in Alleged Pandemic Bribery, Money Laundering Scheme in NYC
Accused of Misusing Millions in Public Funds
A Clifton Park man has been arrested after allegedly misusing millions in public funds during the COVID-19 pandemic, according to the United States Attorney’s Office for the Eastern District of New York. Along with two other suspects in the case, Julio Medina, 64, faces numerous federal charges.
Background on the Case
During the COVID-19 pandemic, Medina founded and served as the executive director and chief executive officer for an unnamed non-profit organization in New York City. The non-profit was dedicated to providing reentry services to formerly incarcerated individuals. He had also served in various public service roles, including as a member and the occasional acting chair of the city’s Board of Correction.
Emergency Transitional Housing Program
In June 2020, Medina’s non-profit organization was contracted by the New York City Mayor’s Office of Criminal Justice (MOCJ) to implement an emergency transitional housing program at local hotels and other businesses. Through the initiative, which was meant to curtail the spread of COVID-19 in the city’s jails, incarcerated individuals were released to contracted hotels and offered mental health, security, job training, and food services, the DA said.
$122 Million in Public Funds
Between June 2020 and December 2023, Medina’s non-profit received around $122 million in public MOCJ funds to operate the program at various hotels, according to officials. With the money, Medina allegedly began soliciting and accepting bribes from the case’s two other defendants – Weihong Hu, 59, of Manhattan, and Christopher Dantzler, 49, of Baldwin – in exchange for providing business.
Bribery and Money Laundering Scheme
“The defendants’ brazen and illegal kickback scheme stole money from the City of New York that was intended to provide emergency housing and support services during the pandemic,” United States Attorney John Durham said. “While New York City was trying to curb the spread of COVID-19, the defendants exploited a non-profit organization to enrich themselves.”
Charges and Arraignment
Medina and the two other defendants were arraigned on February 13, according to the DA. The next status conference will take place on March 12. Medina faces numerous charges, including wire fraud conspiracy, honest services wire fraud, conspiracy to violate the Travel Act, use of a facility of interstate facilities in aid of bribery, and money laundering conspiracy.
FAQs
* What was the purpose of the emergency transitional housing program?
The program was designed to provide temporary housing for incarcerated individuals released from city jails to curtail the spread of COVID-19.
* How much money did Medina’s non-profit organization receive in public funds?
Between June 2020 and December 2023, Medina’s non-profit received around $122 million in public MOCJ funds.
* What were the alleged bribes and kickbacks paid to Medina?
Medina allegedly received at least $2.5 million in U.S. currency, bribes, and kickbacks, including a $1.3 million townhouse, a $107,000 luxury car, and a $705,000 house in Clifton Park.
* What happened to the public funds?
Medina allegedly directed around $51 million in public funds to Hu’s and Dantzler’s businesses. Dantzler’s security company received around $21 million, $9 million of which he personally kept. Hu received $12 million in public funds for her hotels and $17 million for her catering company.
