A tech firm ditched a power lobbyist — and called on the schools chancellor’s brother

This story was originally published on Sept. 9 by THE CITY. Sign up here to get the latest stories from THE CITY delivered to you each morning.

In late 2022 a Florida-based tech firm called Saferwatch saw a potentially lucrative opportunity in New York City: selling “panic button” apps for the city’s public schools to use in emergencies such as fires or active shooters. To approach key officials, including Schools Chancellor David Banks and Deputy Mayor for Public Safety Philip Banks III, they hired Corey Johnson, the former City Council Speaker turned lobbyist.

But a year later, Johnson had made little headway, with Saferwatch in just five schools as part of a pilot program, and the company ditched Johnson as their representative. Around the same time, they turned to another firm that advertises “government relations,” the Pearl Alliance, owned and operated by David and Phil’s brother, Terence Banks.

The city’s ethics rules prohibit lobbying family members. But Terence Banks did not register as a lobbyist with the city clerk, as required of anyone doing more than $5,000 in business. Instead he operates a consulting firm called Pearl Alliance that provides “government relations” to private sector clients to bridge “a key gap between New York’s intricate infrastructure and political landscape.”

Last week all three Banks brothers — Terence, Philip and David — found themselves the subjects of search warrants from federal authorities, who seized their electronic devices in a newly emerging investigation of the Adams administration.

The specific nature of the inquiry by Manhattan U.S. Attorney Damian Williams into the activities of the Banks brothers is not yet known, but a connection between Terence’s work and his brothers’ as top advisors to the mayor is emerging in city and state records. The Daily News first identified firms Terence Banks’ website advertised as clients, which also include SVAM International, Derive Technologies and Mercato Inc.

When Adams arrived at City Hall in January 2022, the mayor had appointed both David and Philip to prominent posts on his team. Adams had a longstanding relationship with Philip Banks dating to their days as fellow cops in the NYPD, and in his role as deputy mayor Philip has come to play a major role in increasing the use of technology to heighten public safety. David Banks, meanwhile, arrived as schools chancellor following a high-profile track record in public education, having formed the Eagle Academy network of schools primarily serving boys of color.

Terence Banks did not make it on to Adams’ team. He remained in his job as a mid-level supervisor at the Metropolitan Transportation Authority (MTA) with decades of service at the agency and zero experience as a lobbyist. But he’d made his support for the mayor clear, having organized three fundraisers for Adams during the mayoral campaign, including one co-hosted by his brothers. All told, he raised nearly $48,000 for Adams.

That July, while still employed by the MTA, Terence Banks incorporated the Pearl Alliance. The firm’s intention was to provide clients with “government and community relations” and offer advice for minority-owned companies seeking governmental work. He retired from the MTA eight months later, and the website for the Pearl Alliance went live in July 2023.

It’s not clear precisely when Saferwatch became one of Terrence Banks’ clients. By late 2022 the Florida-based firm was already trying to procure work in New York via former Speaker-turned-lobbyist Johnson, to sell its “panic button” app to the City of New York.

Over the next few months, Johnson targeted both Banks brothers on Saferwatch’s behalf, records show.

Chancellor Banks’ schedule reports a half-hour meeting between the chancellor and Johnson to discuss Saferwatch on December 7, 2022. January and February 2023 lobbyist records show Johnson listing Justin Meyers, chief of staff to Phil Banks, as an intended subject of lobbying on behalf of Saferwatch, pitching the idea of getting NYPD school safety officers to employ the app.

At first it seemed like he was making progress. In October 2023, the head of the NYPD’s school safety unit, Kevin Taylor, told a City Council hearing that the unit was testing out the Saferwatch app in a pilot program at five schools, and that the department’s intention was to expand the program citywide.

But by early 2024 Johnson had ceased representing Saferwatch, records show. As of July, Saferwatch was a client of Terence Banks, according to an archived screenshot of the Pearl Alliance website.

In an interview, Johnson said that at no time did he communicate with Terence Banks about Saferwatch, and that he wasn’t aware the company was a client claimed by Pearl Alliance until late last week, after the FBI had taken the electronic devices of all three Banks brothers.

THE CITY attempted to contact David Banks, Philip Banks and Terence Banks about the Saferwatch lobbying and has not received a response.

A spokesperson for the Department of Education did not address THE CITY’s questions about David Banks meeting with Johnson on Saferwatch, while stating: “the NYPD tested SaferWatch in five schools, but it did not meet our needs. New York City Public Schools did not spend any funds on this pilot, and no further action was taken.”

The mayor’s press office did not respond to THE CITY’s questions about Johnson meeting with Phil Banks’ chief of staff on behalf of Saferwatch, and THE CITY was unable to reach Terence Banks via any of the phone numbers listed to him.

Late Friday The Pearl Alliance’s website, which listed all its clients, including Saferwatch, was shut down.

A message THE CITY left for Danielle Artis, the Saferwatch representative listed in city lobbying records, did not get a response.

The Banks brothers made headlines Thursday after THE CITY revealed federal authorities had raided the homes of Philip Banks and David Banks, and seized the electronic devices of both of them, along with the cell phones of David Banks’ fiance, First Deputy Mayor Sheena Wright.

Terence Banks’ home in Cambria Heights was also raided and agents took his cell phone as well.

On Friday Mayor Adams’ appeared on PIX 11 to repeat his mantra that the federal investigations are not distracting him, and to let what he calls the “review” run its course. He stood behind Chancellor Banks and First Deputy Mayor Wright and emphasized that they could continue to do their jobs.

“A lot of people believe in due process. Let the due process play out,” he said. “I did nothing wrong. I continue to live the life that I lived, follow the law, protecting the people of this city.”

Additional reporting by Jose Martinez and Alex Zimmerman of Chalkbeat.