NEW YORK — 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.
Banks wasn't a registered lobbyist. His day job, at the time, was as a supervisor in the city's subway system. 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.
Within a month of the hire, 21stCentEd had secured a private meeting with the schools chancellor. In the two years since that October 2022 meeting, more than $1.4 million in Education Department funds have flowed to the company, nearly tripling its previous total, records show.
The siblings — along with a third brother, Philip Banks, who serves as New York City's deputy mayor of public safety — are now enmeshed in a sprawling federal probe that has touched several high-ranking members of Mayor Eric Adams' administration.
Federal investigators seized phones last week from all three brothers and at least three other top city officials, including Police Commissioner Edward Caban, who resigned Thursday. Tom Donlon, a retired FBI official, was sworn in Friday as the interim police commissioner.
The exact nature of the investigation — or investigations — has not been disclosed. Among other things, federal authorities are investigating the former police commissioner's twin brother, James Caban, a former police sergeant who runs a nightclub security business.
On Wednesday, a city operations coordinator was fired after a bar owner in Brooklyn told NBC New York that he had been pressured by the aide into hiring the police commissioner's brother to make noise complaints against his business go away.
Federal investigators are also scrutinizing whether Terence Banks' consulting firm, the Pearl Alliance, broke the law by leveraging his family connections to help private companies secure city contracts, according to a person familiar with the matter. The person spoke to The Associated Press on condition of anonymity because they were not authorized to disclose information about the investigations.