Federal prosecutors have launched an investigation into whether a New York City council member, a top aide to Governor Kathy Hochul, and a political figure in Brooklyn accepted bribes tied to lucrative migrant shelter contracts, according to a report by Associated Press.
The probe centers on Councilmember Farah Louis, her sister Debbie Louis, and Edu Hermelyn. A search warrant signed on March 19 seeks evidence of potential criminal violations, including whether the individuals received benefits in exchange for actions connected to BHRAGS Home Care Inc.
BHRAGS, a Brooklyn-based nonprofit that expanded into migrant shelter operations in 2022, has since secured more than $200 million in city contracts for homeless and emergency housing services. Investigators are examining whether any financial incentives or kickbacks were linked to those agreements.
A spokesperson for Hochul confirmed that Debbie Louis was placed on leave after officials became aware of the federal inquiry. The U.S. Attorney’s Office in Brooklyn declined to comment on the investigation.
According to reporting, the inquiry also includes scrutiny of financial transactions and communications involving individuals connected to the contracts. Separate accounts indicate that Hermelyn may have contacted City Council members to encourage funding allocations for BHRAGS, though his formal role with the organization remains unclear.
City records show that Farah Louis allocated discretionary funding to the nonprofit during her tenure. Meanwhile, a spokesperson for the City Council emphasized that “New Yorkers deserve confidence in their government,” adding that any potential misconduct must be addressed thoroughly.
No charges have been filed, and the existence of a search warrant does not indicate that prosecutors will pursue criminal cases.
