The New York City administration continues to face scrutiny as they pay substantial sums to a developer recently indicted on bribery charges. According to court filings, the developer, identified as Hu, was indicted last month for allegedly bribing a CEO of a New York City non-profit. Despite pleading not guilty to all charges, Hu has been engaged in plea negotiations with prosecutors. Her company receives over $542,000 monthly from Mayor Eric Adams's administration to host a nonprofit program at one of her hotels in Queens.
The payments are part of ongoing contracts that could potentially result in around $20 million over the next three years. This arrangement has drawn criticism, with some questioning the decision to continue payments despite the legal challenges Hu faces. Elizabeth Glazer, a notable critic, expressed skepticism:
"Put in the bluntest way possible, it does seem extraordinary given the indictment, that the administration is essentially paying someone that is poised to be a witness against them."
Several investigations have shed light on Hu's connections and activities. A previous joint investigation by The Guardian, The City, and Documented revealed that Hu allegedly funneled illegal campaign contributions to Mayor Adams at her hotel. Furthermore, she allowed one of Adams's top advisers to reside in her taxpayer-funded shelter hotel for several months and permitted Adams's son to bring a female companion to stay overnight.
In a dramatic turn of events, federal investigators raided Hu's hotel on the same day they searched the home of a friend of Mayor Adams. These developments have raised questions about Hu's potential to offer valuable testimony regarding her dealings with Adams and his allies. It is suggested that she could seek leniency from prosecutors by trading information about these interactions.
Hu's attorney, Kevin Tung, has consistently refuted claims of wrongdoing by his client. Hu's criminal attorney, Benjamin Brafman, described her as a "victim" rather than a conspirator and denied any ongoing plea negotiations:
"there are zero plea negotiations under way."
Despite these assurances, many remain critical of the administration's continued financial ties with Hu's company. Ben Weinberg voiced his concerns about the use of taxpayer dollars:
"It's baffling that taxpayer dollars continue to fund a subcontractor after their indictment for bribery and theft of public funds."
The mayor's office of criminal justice defended their decision to maintain the contract with Hu's company, citing potential risks associated with terminating the agreement:
"without a suitable alternative would risk community safety, retraumatize individuals, and ultimately cost taxpayers more."
This complex situation poses a dilemma for New York City's administration as they navigate the legal and political ramifications of their association with Hu. The ongoing payments and allegations add layers of complexity to an already contentious relationship.