New York City

NYC director of asylum operations is latest Adams official to receive federal subpoena: Source

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Federal prosecutors have issued another subpoena to a high-ranking member of Mayor Eric Adams’ administration. The subpoena was sent by federal investigators to a manager in the mayor’s office who has a window into the city’s vast world of lucrative migrant contracts. NBC New York’s Melissa Russo reports.

Another official in the administration of New York City Mayor Eric Adams has received a subpoena from federal investigators, according to a source, as probes continue to swirl around City Hall.

Federal prosecutors issued a subpoena for Molly Schaeffer, the director of the Asylum Seeker Operations for New York City, to testify before a grand jury, a source familiar with the matter told News 4.

The purpose of the subpoena was not immediately clear, nor was it known whether it was connected to any of the ongoing federal investigations swirling around Mayor Eric Adams, although the source confirmed Schaeffer's house was not raided.

Schaeffer has not been accused of any wrongdoing. Federal prosecutors often use subpoenas to get testimony or records from people with information relevant to an investigation, not necessarily because they believe the person has committed a crime.

A spokesperson for the U.S. Attorney's Office for the Southern District of New York did not comment on the matter.

Fabien Levy, the deputy mayor for communications, issued a statement on behalf of City Hall.

"While we won't comment on an ongoing investigation, as we have repeatedly said, we expect all team members to fully comply with any ongoing inquiry. Molly Schaeffer is an integral part of our team and works hard every day to deliver for New Yorkers," the statement read.

The Office of Asylum Seeker Operations, created in March 2023, oversees services for asylum seekers and manages the city's advocacy with state and federal governments, according to the city's website. Schaeffer, who coordinates the city’s efforts to get housing and social services for newly arrived migrants, received the subpoena at her Brooklyn home Friday, according to a person familiar with the matter. The person spoke to The Associated Press on condition of anonymity because they were not authorized to discuss the subpoena.

The authorities did not seize Schaeffer's electronic devices — as they have done to several other Adams’ aides in recent weeks — but served her a subpoena requesting her presence in front of a federal grand jury in Manhattan, the person said.

It was not immediately clear when the testimony would take place or how it could fit within the multiple ongoing federal law enforcement investigations swirling around Adams.

In her current role, Schaeffer works closely with another top mayoral aide, Tim Pearson, a longtime confidante of Adams who oversees contracts for new shelters built by the city to house asylum seekers. Earlier this month, federal agents seized the phones of Pearson, along with several other top deputies to the mayor, including the New York City police commissioner, the school's chancellor and two deputy mayors.

The police commissioner, Edward Caban, resigned last week.

Those seizures are believed to be related to probes overseen by Manhattan federal prosecutors examining, at least in part, whether the relatives of top-ranking Adams' aides used their family connection for financial gain.

Sources familiar with the matter say a Catholic church in Brooklyn received a subpoena requesting information about financial or business dealings between Frank Carone — the one-time chief of staff to Mayor Eric Adams — and a monsignor named Jamie Gigantiello. NBC New York's Jonathan Dienst reports.

Word of the subpoena came one day after NBC New York broke news that federal investigators were looking into a close advisor to Mayor Eric Adams and a monsignor with the Brooklyn Diocese, according to sources familiar with the matter.

A Catholic church in Brooklyn received a subpoena requesting information about financial or business dealing between Frank Carone, the one-time chief of staff to Adams, and a monsignor named Jamie Gigantiello.

In July, Adams received his own subpoena from federal prosecutors seeking information from him, his campaign, and City Hall. That request came eight months after FBI agents seized the mayor's phones and an iPad as he was leaving an event in Manhattan.

Those subpoenas requested information about the mayor’s schedule, his overseas travel and potential connections to the Turkish government, according to a person familiar with the matter who spoke on condition of anonymity because they were not authorized to discuss the investigations.

Adams also has not been accused of any wrongdoing.

A separate federal probe led by the U.S. Attorney's Office in Brooklyn is believed to be focused on Adam's director of Asian Affairs, Winnie Greco.

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