Feds serve NYC education department with subpoena

NEW YORK — Federal investigators recently served New York City’s education department with a subpoena as part of their probe into outgoing schools Chancellor David Banks and his family, POLITICO has learned.

Authorities are seeking contracts between the Department of Education and companies that have ties to the Banks family, as well as related records, according to two people who were granted anonymity to discuss a sensitive matter.

Much of that information sought by investigators falls under the office of Emma Vadehra, deputy chancellor for operations and finance.

“The DOE staff feels that they’re being dragged into this mess,” one person familiar with the situation said.

The subpoena comes amid multiple federal and state probes into Mayor Eric Adams, his aides and his political operation — and just weeks after he was indicted on federal corruption charges.

When asked about the subpoena, Nathaniel Styer, an agency spokesperson, said the Department of Education does not comment on ongoing investigations. He said no subpoena was issued directly to Vadehra, but would not deny that one had been issued to the DOE itself when asked a direct question.

As of Friday afternoon, it was unclear whether the subpoena is aimed at Banks, his consultant brother, Terence Banks, or both of them. The feds are looking into the role of Terence Banks’ firm in a potential bribery scheme involving city contracts.

The subpoena is the latest sign that one of the FBI's inquiries is advancing since federal agents last month seized the phones of David and Terence Banks — as well as their brother Phil Banks, then-deputy mayor for public safety. Both David and Phil Banks recently stepped down from their high-ranking government posts.

Federal and city authorities raided the NYPD’s school safety offices in Queens on Thursday as well and took the phone of Kevin Taylor, the former school safety director. He has been placed on modified duty .

In that instance, the agents were searching for documents linked to SaferWatch, a Florida-based company that sells panic button apps schools can use in emergencies.

The firm paid the NYPD school safety division $46,690 last year for a pilot testing the app at five city schools.

Authorities are probing whether Philip and Tim Pearson — a former senior aide to Adams — steered contracts to companies represented by Terence.

A series of resignations have followed the indictment against the Democratic mayor. Aside from the Banks brothers, David Banks’ wife, First Deputy Mayor Sheena Wrigh has stepped down, as have Pearson and Adams’ Asian liaison, Winnie Greco.

Those departures came after Gov. Kathy Hochul directed Adams to cast aside top officials caught up in investigations. Hochul has the power to remove Adams from office.

Wright recently posted a message on her Instagram page about having “stories to tell.” The chancellor — whom Adams forced him out early — revealed Thursday he’s working on a book and has been documenting “everything that I do.”

In a surprise turn of events, Phil Banks also took to X early Friday morning to defend his younger brother — and urged reporters to file Freedom of Information Law requests.

“Saferwatch had a contract with the nypd school safety division before they knew Terence banks,” the ex-city official tweeted . “After they entered into a client arrangement with Terence they received NO additional contract from school safety. Don’t believe me FOIL it.”

Joe Anuta contributed to this report.