(The Center Square) — Federal prosecutors are investigating a New York City Council member and her sister, an aide to Democratic Gov. Kathy Hochul, amid allegations they took bribes to help steer taxpayer funds to a Brooklyn migrant shelter provider.
The investigation, first reported by the Associated Press, was revealed in a warrant for evidence of possible criminal violations involving Councilmember Farah Louis, a Brooklyn Democrat, and Debbie Louis, Hochul’s assistant secretary of New York City intergovernmental affairs. The warrant also names Brooklyn Democratic Party Chairman Edu Hermelyn, a one-time advisor to former Mayor Eric Adams, the AP reported.
Prosecutors are looking into whether the trio received benefits in exchange for actions taken on behalf of BHRAGS Home Care Inc, a Brooklyn-based service provider hired by the city in 2022 to run an emergency migrant shelter. The company has received more than $200 million through contracts with the city to operate the shelter in response to a massive influx of migrants and asylum seekers, records show.
Federal authorities are also seeking records of money transfers and communications between the trio and Edouardo St. Fort, a former New York Police Department sergeant who retired in 2023, the AP reported. Public records show St. Fort’s security company, Fort NYC Security, received a $3 million contract from the Department of Homeless Services that same year, according to the report.
Debbie Louis was placed on leave last week after the governor learned of the federal corruption investigation, according to a Hochul spokesperson. So far, the governor hasn’t commented publicly on the investigation.
A City Council spokesperson issued a statement late Monday saying it “takes any potential misconduct extremely seriously” but called on federal authorities to conduct a fair investigation into the allegations.
“New Yorkers deserve confidence in their government,” the statement said. “It is essential that the federal investigation proceed fairly and expeditiously to bring this matter to a resolution.”
Hermelyn served as a senior adviser to former New York City Mayor Eric Adams but resigned after questions arose about a potential conflict of interest arising from his role as a Brooklyn district party leader.
New York City saw hundreds of thousands of migrants flocking to the city between 2022 and 2024 following a surge of immigration on the U.S.-Mexico border. The city spent more than $8 billion on housing, food and other costs for migrants over the past two years, drawing scrutiny from the Trump administration.
Under New York’s right-to-shelter law, the city must provide emergency housing to anyone who requests it, regardless of their immigration status. At one point, the city was operating more than 50 emergency shelters as it struggled to care for more than 70,000 migrants, refugees, and other homeless individuals.
Currently, New York City has contracts with 112 hotels, accounting for nearly 12,000 shelter units that house about 8,100 families, according to city records.
