NEW YORK (AP) — Ahead of the 2022 school year, the education technology company 21stCentEd was seeking to expand its presence in New York City’s public schools.
So they turned to a man, Terence Banks, whose new consulting firm promised to connect clients with top government stakeholders.
But he had at least one platinum connection: His older brother, David Banks, is New York City’s schools chancellor, overseeing the nation’s largest school system.
David and Terence Banks have said they don’t believe they are the target of the investigation.
Timothy Sini, an attorney for Terence Banks, did not respond to specific questions about the consulting firm.
“We are cooperating with a federal investigation,” he said.
The spokesperson could not say how the meeting with the school’s chancellor came about or whether Terence Banks attended.
He added that Terence Banks had provided “no value” to the company and that his contract was terminated last December.
It wasn’t clear whether the federal inquiry into the consulting firm run by Terence Banks was part of the investigation into the police commissioner’s brother.
He said he never met with Terence Banks about city business.
NEW YORK (AP) — The education technology startup 21stCentEd aimed to increase its presence in the public schools of New York City prior to the 2022 academic year. They therefore turned to Terence Banks, a man whose new consulting business offered to put clients in touch with important government figures.
Banks was not a legally permitted lobbyist. At the time, he worked as a supervisor in the city’s subway system during the day. Nonetheless, he had at least one platinum connection: David Banks, his elder brother, is the chancellor of New York City’s schools, which is the biggest educational system in the country.
After only one month of employment, 21stCentEd was able to arrange a private meeting with the chancellor of the school. Records indicate that in the two years following that October 2022 meeting, the company has received over $1.04 million in funding from the Education Department, almost tripling its prior total.
The three brothers, Philip Banks, the deputy mayor of public safety for New York City, and the other brother, James, are currently embroiled in an extensive federal investigation that has affected a number of senior officials in Mayor Eric Adams’ council.
All three brothers’ phones as well as those of at least three other high-ranking city officials—among them Police Commissioner Edward Caban, who resigned on Thursday—were taken by federal investigators last week. Overnight Police Commissioner Tom Donlon, a former FBI agent, took the oath of office on Friday.
The specifics of the investigation, or investigations, remain undisclosed. Federal authorities are looking into a number of matters, including James Caban, the twin brother of the former police commissioner and a former police sergeant who now owns a nightclub security company.
An aide forced a Brooklyn bar owner to hire the brother of the police commissioner in order to allay noise complaints against his establishment, leading to the firing of the coordinator of city operations on Wednesday, according to NBC New York.
According to a person familiar with the situation, federal investigators are also examining whether Terence Banks’ consulting company, the Pearl Alliance, broke any laws by using his family connections to help private businesses obtain city contracts. Being under no authority to divulge details regarding the investigations, the individual only agreed to speak anonymously to The Associated Press.
The three brothers Banks have all denied any wrongdoing. According to David and Terence Banks, they don’t think they’re the focus of the probe. The family’s concurrent employment in the public and private sectors, however, may have violated state and local laws on procurement lobbying as well as conflict of interest regulations, according to government watchdogs.
According to Susan Lerner, executive director of Common Cause New York, a good-government organization, “it has the appearance of Terence Banks using his family connections to help his client and enrich himself.”.
To specific inquiries concerning the consulting firm, Terence Banks’ lawyer, Timothy Sini, did not reply. However, he stated in an email, “We have received assurances from the government that Mr. Dot Banks is not the focus of this investigation. “.
David Banks said at a press conference on Friday that he had not received a call back from FBI agents. He also declined to comment on questions regarding his affiliation with his brother’s consulting business. He declared, “We are assisting a federal investigation.”.
It is against city ethics rules for relatives to lobby one another. As per John Kaehny, the executive director of the good-government organization Reinvent Albany, David Banks would have to obtain a waiver from the city’s Conflicts of Interest Board before meeting with a company that is represented by his brother.
Kaehny wrote in an email, “It’s surprisingly obtuse or arrogant that David Banks, one of the city’s top government officials, would ignore this basic, commonsense, conflict of interest rule.”.
The Conflicts of Interest Board and the Department of Education refused to comment on whether a waiver was asked for.
According to Nathaniel Styer, a spokesman for the Department of Education, all expenditure associated with 21stCentEd has originated from individual schools and districts, which are free to make purchases totaling less than $25,000 without official approval from the department.
The Utah-based company offers curriculums and teacher training centered around automation, robotics, and artificial intelligence.
Terence Banks was hired, according to Dylan Howard, a company spokesperson, “to help 21stCentEd present our STEM solutions and services to decision makers within New York City public schools.”. He claimed that a former employee of 21stCentEd informed them about his consulting practice.
The spokesperson was unable to disclose the nature of the meeting with the chancellor of the school or whether Terence Banks was present. He continued by saying that Terence Banks’ contract was terminated in December of last year because he had brought “no value” to the business.
A Pearl Alliance website that was taken down last week after news of the federal investigations broke revealed that Terence Banks’ consulting firm had been hired by several companies with city contracts, including 21stCentEd.
Schools and police departments can purchase panic buttons from SaferWatch, another listed client. According to city records, it has been granted more than $67,000 in city contracts since August of 2023.
Philip Banks, the third Banks brother, is the deputy mayor for public safety and continues to have significant influence over the NYPD. Hank Sheinkopf, a SaferWatch representative, chose not to respond. Enquiries via email were not answered by the NYPD.
A software company, a start-up grocery delivery service, and a concrete company were among the nine clients listed by the Pearl Alliance with contracts worth millions of dollars with the city. At least seven of the businesses have agreements with the city, either from the past or the present.
Whether the federal investigation into Terence Banks’ consulting firm was related to the police commissioner’s brother’s investigation was unclear.
Fabien Levy, the deputy mayor for communications, said that Ray Martin, the city official who was allegedly responsible for pressuring a bar owner to hire James Caban, was “terminated for cause” on Thursday following the mayor’s office’s discovery of the claims.
Shamel Kelly, the owner of the bar, claimed to WNBC-TV that Martin had given him a warning last year to either pay James Caban or face having his establishment closed. Kelly said James Caban insisted on a $2,500 down payment. He claimed to have been interviewed by the city’s Department of Investigation and federal investigators on Thursday. The ‘U. S. neither the Department of Investigation nor the attorney’s office would comment.
It took some time for attempts to contact Martin to be successful. A dormant cell phone number was registered under his name.
James Caban has “unequivocally denied any wrongdoing,” according to his attorney, and he has complied fully with all requests from law enforcement. Attorney Sean Hecker predicted that after the investigation is finished, “it will be evident that these claims are baseless and without merit.”. “.
David Banks and Philip Banks continue to work for the government. Benjamin Brafman, Philip Banks’ lawyer, opted not to comment.
Adams stated during a press conference on Tuesday that he has known the Banks family for decades, ever since he was a police officer under the father of the brothers. He stated he did not have a meeting regarding city business with Terence Banks.
The Banks families are people I’ve known for years, Adams remarked. “And when I get to know someone, I hold them to the same standards that I do.”. “.
