The Internal Revenue Service's Criminal Investigation division has joined the U.S. Attorney's Office for the Southern District of New York in looking into questions about the NYPD's nightclub enforcement, a senior official tells NBC New York.
The SDNY and IRS have seized the cellphones of numerous NYPD officials, including at least one phone belonging to Commissioner Edward Caban. Caban's brother, James, also had his phone seized in the corruption investigation.
Several sources tell NBC New York federal investigators want to know if James Caban profited from his ties to his powerful brother and the NYPD. Specifically, the investigation is looking into if James was paid by bars and clubs in Midtown and Queens to act as a police liaison, and if those clubs were then afforded special treatment by local precincts, the sources said.
Other questions being investigated are if officers were asked to crack down harder on clubs that did not do business with the commissioner's brother or if promotions were given to officers who played along with the potential scheme, according to sources.
"The Department is aware of an investigation by the U.S. Attorney’s Office for the Southern District of New York involving members of service. The Department is fully cooperating in the investigation," an NYPD spokesperson said Thursday. The NYPD referred any further questions to the U.S. Attorney.
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No one has been charged in the investigation.
Local
News 4 left several messages for James Caban on his phone and with a family member, but were not returned.
A spokeswoman for the IRS Criminal Investigation division declined to comment.
In a separate investigation, the FBI and the U.S. Attorney's Office are investigating past fundraising by a campaign of Mayor Eric Adams.
The full scope of the investigation is unclear and no criminal charges have been filed.
Adams has consistently denied any wrongdoing in the matter.
In a third case, cellphones of several members of Adams' inner circle were seized as part of an investigation by the FBI and SDNY. Searches took place at the homes of the Banks brothers, who are among the mayor's closest allies. The searches included Deputy Mayor for Public Safety Phil Banks, schools Chancellor David Banks (who lives in Harlem with First Deputy Mayor Sheena Wright), and a third Banks brother, Terence, who runs an outside consulting firm.
Sources familiar with the matter said that third investigation is looking into what, if any, dealings City Hall may have had with the consulting firm run by Terence Banks.
"We have been assured by the Government that Mr. Banks is not a target of this investigation," Terence Banks' attorney, Timothy Sini, the former Suffolk County District Attorney told News 4.
Both the LinkedIn page and business website for Terence Banks were taken down on Friday. On the website for his company, The Pearl Alliance, Banks was listed as the founder and CEO, and the firm was described as "dedicated to connecting businesses with government and community stakeholders."
Schools Chancellor David Banks released the following statement to News 4: “Yesterday was the first day of school for the 1.1 million students and staff of New York City Public Schools, and I remain focused on ensuring they have safe, academically rigorous, and joyful school year. I am confirming that I am cooperating with a federal inquiry. At this time, I cannot comment any further on that matter.”
Ben Brafman, the high-powered attorney representing Phil Banks, declined to comment.
The FBI and U.S. Attorney's Office have not commented on the investigations. No criminal charges have been filed.
"My message throughout my public life has been to follow the law and that's what we're doing," Adams said. The mayor said he is staying focused on his job and tuning out the distraction, despite growing attention on the investigations and intense pressure.
On Thursday, in an editorial, the New York Post called on Adams to tell Commissioner Caban to resign.
"Caban as NYPD chief works with the feds every day; now he’s had his home raided by the very same feds. Even if he’s done nothing wrong, how can he possibly do his job properly while this stink remains? Even if he’s cleared, bad blood will fester on. The only losers in this scenario are the NYPD and the people of New York City," the editorial read.
