Conflict of Interest Scandal Rocks City’s Real Estate Leases
City Official’s Associate Installed Real Estate Broker with Close Ties to Advise on Municipal Leases
A longtime associate of Mayor Eric Adams, overseeing city leases, installed a real estate broker with close personal ties to himself and another top Adams aide to advise the city on municipal leases, a position that would generate millions of dollars in commissions for their friend, a lawsuit filed Tuesday alleges.
Unethical Practices Exposed
Jesse Hamilton, a deputy commissioner at the Department of Citywide Administrative Services (DCAS), told Cushman & Wakefield, the brokerage that serves as tenant representative for DCAS on millions of dollars in leases, that it would lose that work if it didn’t appoint a specific C&W broker, Diana Boutross, to handle all its city leases, the complaint filed against Cushman & Wakefield in Manhattan Supreme Court charges.
Conflict of Interest Uncovered
Boutross has "personal relationships" with Hamilton and Ingrid Lewis-Martin, formerly the mayor’s chief advisor, according to the lawsuit. Boutross, Hamilton, and Lewis-Martin all vacationed together in Japan in September, and all three had their phones seized by the Manhattan District Attorney upon their arrival at JFK International Airport.
Lewis-Martin’s Troubles
Lewis-Martin resigned her position as No. 2 to the mayor in December after she was indicted by the DA on unrelated bribery charges last month.
DCAS Review Underway
During a City Council hearing in October, questions arose over Hamilton’s handling of a lease in a Wall Street building owned by a donor to Adams. In response, First Deputy Mayor Maria Torres-Springer began a review of all his activities at DCAS in October. A spokesperson said Tuesday the review is still underway. The Department of Investigation has also opened a probe.
Lawsuit Filed
The lawsuit was filed Monday by JRT Realty Group, a female-owned brokerage Cushman & Wakefield retained to help them meet city-set goals for hiring minority- and women-owned businesses. The law firm Hodgson Russ alleged in a civil complaint that Boutross pushed out JRT in a bid to increase her commissions.
Boutross’s Inexperience
The suit alleges that at the time C&W designated Boutross to handle the DCAS account at Hamilton’s request, she was a specialist in retail leasing and "had virtually no experience with government office leases (an area of expertise distinct from retail leasing)."
Conclusion
This conflict of interest scandal has sparked widespread criticism of the Adams administration’s handling of city leases. The lawsuit alleges that Boutross was installed by Hamilton to generate millions of dollars in commissions, raising questions about the integrity of the city’s procurement process.
Frequently Asked Questions
Q: What is the purpose of the lawsuit?
A: The lawsuit was filed by JRT Realty Group, a female-owned brokerage, against Cushman & Wakefield, alleging that a real estate broker with close ties to the Adams administration was installed to handle city leases, generating millions of dollars in commissions.
Q: Who is Diana Boutross?
A: Diana Boutross is the real estate broker appointed by Cushman & Wakefield to handle city leases, with close personal ties to Jesse Hamilton and Ingrid Lewis-Martin, former top aides to Mayor Eric Adams.
Q: What is the significance of this scandal?
A: The scandal highlights the potential for conflicts of interest in the Adams administration’s handling of city leases, raising questions about the integrity of the city’s procurement process.
