Probe Examines Ties Between NYC Officials and Nonprofit Awarded $200M in Migrant Shelter Deals

Federal prosecutors are investigating whether New York City officials accepted bribes or kickbacks tied to more than $200 million in contracts awarded to a nonprofit providing migrant shelter services, according to court documents and law enforcement actions reviewed by The Associated Press.

A search warrant signed March 19 seeks evidence of possible criminal violations involving New York City Councilmember Farah Louis, her sister Debbie Louis, an aide to New York Gov. Kathy Hochul, and Edu Hermelyn, a political figure linked to Brooklyn Democratic leadership.

Prosecutors are examining whether the individuals received benefits in exchange for actions taken on behalf of BHRAGS Home Care Inc., a Brooklyn-based nonprofit that expanded into migrant shelter services during the recent influx of asylum seekers, as per the Associated Press.

The investigation has intensified following the indictment on Tuesday of Edouardo St. Fort, a former New York Police Department sergeant, whose company provided security services to migrant shelters. According to court records, St. Fort faces charges including bribery involving federally funded programs and conspiracy. His company, Fort NYC Security, received contracts worth more than $7 million, often awarded on an emergency basis without competitive bidding.

Records show BHRAGS Home Care secured more than a dozen contracts from the city's Department of Homeless Services totaling over $200 million after expanding its operations in 2022. The warrant seeks communications and financial records linking the nonprofit, city officials, and St. Fort. An attorney for BHRAGS' executive director declined to comment.

A spokesperson for Hochul confirmed Debbie Louis was placed on leave after the governor learned of the investigation. Messages seeking comment from Farah Louis and Hermelyn were not returned. A spokesperson for the U.S. attorney's office in Brooklyn also declined to comment.

The City Council said it "takes any potential misconduct extremely seriously," adding that "New Yorkers deserve confidence in their government" and that the investigation should proceed "fairly and expeditiously."

The probe comes as New York City's rapid expansion of emergency shelters during a surge in migrant arrivals has drawn scrutiny from watchdogs and critics. Under former Mayor Eric Adams, the city relied on expedited contracting processes to scale services, including housing and security.