Two brothers of top Adams administration officials ensnared in federal corruption probe: sources

The brothers of three high ranking officials in Mayor Adams’ administration have become ensnared in a corruption investigation that prompted federal authorities to execute search warrants on them and several top mayoral advisers this week, according to law enforcement sources and other individuals familiar with the matter.

The two brothers — James Caban and Terence Banks — respectively have financial interests in nightlife industry security and government relations, and the federal investigators leading the latest probe are scrutinizing both areas, sources familiar with the matter tell the Daily News.

The probe burst into public view Thursday, when it emerged that NYPD Commissioner Ed Caban, James Caban’s twin brother, had his electronics seized and home searched by federal investigators.

Within the same 36-hour span, Schools Chancellor David Banks and Deputy Mayor for Public Safety Phil Banks, the older brothers of Terence Banks, had their homes searched and electronics seized by the feds, too, as did First Deputy Mayor Sheena Wright , who is David Banks’ longtime partner and lives with him in Manhattan.

No one targeted by the searches and seizures currently stand accused of wrongdoing, and the Manhattan U.S. attorney’s office, which is spearheading the investigation, has declined to divulge its focus.

But some details about the probe — which is separate from the Manhattan feds’ investigation into Adams’ 2021 campaign ties to Turkey’s government — began to emerge Friday.

Sources familiar with the matter told The News that both James Caban and Terence Banks had their homes searched and electronics confiscated by the feds over the same time span as the top Adams administration officials. They are the only individuals believed to be involved in this week’s law enforcement operations who are not members of the Adams administration.

James Caban, a former NYPD officer, works as a consultant providing security for nightlife venues in the city. His professional role is under scrutiny as part of the federal probe, and investigators are specifically looking at whether he “sold” police protection to nightlife establishments, according to two sources familiar with the matter.

Late Friday, NBC New York reported the Internal Revenue Service’s criminal investigation unit has joined in the Manhattan U.S. attorney’s office in scrutinizing the NYPD’s nightlife enforcement protocols.

Sources also told The News that phones were confiscated from officers in the 10th precinct, which includes nightlife-heavy Chelsea and Hell’s Kitchen.

Assistant NYPD Chief James McCarthy, who oversees operations for the Manhattan South district that includes the 10th precinct, got his phone taken by the feds as well, as did Raul Pintos, Commissioner Caban’s chief of staff, the sources confirmed.

Caban hasn’t returned phone calls this week, and the NYPD wouldn’t comment other than to say it is “fully cooperating” in a Manhattan U.S. attorney’s office investigation “involving members” of the police department.

Federal investigators also seized devices from Terence Banks, the younger brother of Phil and David Banks.

The youngest Banks, who also hasn’t returned calls, worked at the MTA for over two decades before launching a company that on its website describes itself as working in “government and community relations.”

The company website — as well as Terence Banks’ LinkedIn page — were abruptly scrubbed from the internet late Friday, but The News obtained screen grabs of both.

Companies listed on the website as clients of the firm include several with city government contracts, according to public records reviewed by The News. Terence Banks isn’t registered to lobby in New York, and sources said his role is under review.

By law, individuals have to register with the state or the city if they receive income exceeding certain monetary amounts while lobbying, which is defined as advancing private business interests in communications with public officials.  It is unclear what Banks’ income levels are.

A New York businessman, who spoke on condition that neither his name nor his business sector be identified, said he was once approached by Terence Banks. The businessman said the service Banks offered amounted to helping smooth the way for business opportunities with the city government.

Adams doesn’t appear to have been targeted in the latest round of law enforcement actions this week, and his chief counsel said Thursday the feds “have not indicated to us the mayor or his staff are targets of any investigation.”

Adams was served with a grand jury subpoena in July as part of the unrelated federal investigation into whether the Turkish government funneled illegal donations into his 2021 campaign coffers.

As part of that probe, FBI agents stopped Adams in the street last year and confiscated his electronics, a dramatic move that came days after they had also raided the homes of Brianna Suggs and Rana Abbasova, two longtime aides to the mayor involved in both his campaign and city government office.

The Brooklyn U.S. attorney’s office, meantime, has been leading another investigation that resulted in FBI agents in February raiding the homes of Winnie Greco , another senior adviser to the mayor at City Hall. That probe is reportedly in part scrutinizing trips Adams and Greco took to China while he was Brooklyn borough president that were partially funded by the country’s Communist Party.

Adams hasn’t been accused of wrongdoing. For months, he has maintained he repeatedly instructs his staff to follow the law.

“The goal is to follow the law and that is what this administration always stood for and what we’re going to continue to stand for,” he told reporters while walking out of City Hall on Thursday afternoon.