IRS Joins Probe Into NYPD Nightclub Law Enforcement Practices, Commissioner’s Phone Seized – NBC New York

The Internal Revenue Service’s (IRS) Criminal Investigations Division has teamed up with the U.S. Attorney’s Office for the Southern District of New York to investigate questions about the NYPD’s enforcement of nightclub regulations, a senior official told NBC New York.

The SDNY and IRS have seized the cell phones of numerous NYPD officers, including at least one phone belonging to Commissioner Edward Caban. The phone of Caban’s brother, James, was also seized in the corruption investigation.

Multiple sources tell NBC New York that federal investigators want to know whether James Caban profited from his ties to his powerful brother and the NYPD. The investigation is specifically looking at whether James was paid by bars and clubs in Midtown and Queens to act as a police liaison, and whether those clubs then received special treatment from local precincts, the sources said.

The SDNY and IRS have seized the cellphones of numerous NYPD officers, including at least one phone belonging to Commissioner Edward Caban. News 4’s Melissa Russo reports.

According to sources, other questions are also being investigated, namely whether officers should have taken tougher action against clubs that did not do business with the commissioner’s brother, or whether promotions were given to officers who cooperated with the possible plan.

“The Department is aware of an investigation by the U.S. Attorney’s Office for the Southern District of New York involving members of the agency. The Department is fully cooperating with the investigation,” an NYPD spokesman said Thursday. The NYPD referred any further questions to the U.S. Attorney.

No one has yet been charged in the investigation.

News 4 left several messages for James Caban on his phone and with a family member, but none were responded to.

A spokeswoman for the IRS Criminal Investigations Division declined to comment.

In a separate investigation, the FBI and U.S. Attorney’s Office are examining past fundraising by a campaign run by 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.

More questions are being asked about NYPD Commissioner Edward Caban’s twin brother who is allegedly profiting from the use of police resources. It’s one of three investigations spanning NYPD headquarters and City Hall as the FBI and federal prosecutors focus on possible corruption involving top aides to Mayor Eric Adams. NBC New York’s Jonathan Dienst reports.

In a third case, the cellphones of several members of Adams’ inner circle were seized as part of an FBI-SDNY investigation. Searches were conducted at the homes of the Banks brothers, who are among the mayor’s closest allies. The searchers 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 say a third investigation is expected to determine whether City Hall ever did business with Terence Banks’ consulting firm.

“The government has assured us that Mr. Banks is not a target of this investigation,” Terence Banks’ attorney, Timothy Sini, a former Suffolk County prosecutor, told News 4.

Both Terence Banks’ LinkedIn page and business website were taken offline on Friday. The website for his company, The Pearl Alliance, listed Banks as founder and CEO and described the company as “dedicated to connecting businesses with government and community stakeholders.”

Obtained by NBC New York

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 a safe, academically rigorous, and joyful school year. I confirm that I am cooperating with a federal investigation. I cannot comment further at this time.”

Ben Brafman, the influential 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 in my public life has always been to follow the law and that’s what we do,” Adams said. The mayor said he remains focused on his job and ignores distractions despite the growing attention to the investigations and the intense pressure.

In an editorial on Thursday, the New York Post called on Adams to ask Commissioner Caban to resign.

“As NYPD Chief, Caban works with federal law enforcement every day; now his home has been raided by the same federal law enforcement. Even if he has done nothing wrong, how can he do his job properly while this stench continues? Even if he is acquitted, the bad blood will continue to fester. The only losers in this scenario are the NYPD and the people of New York City,” the editorial reads.