Firm Run by Brother of Top N.Y.C. Officials Is Focus of Bribery Inquiry

Terence Banks opened a consulting firm and soon found work with companies that do business with the city agencies overseen by his older brothers.

Federal agents are investigating a possible bribery scheme involving New York City contracts and a consulting firm run by the brother of two top officials in the administration of Mayor Eric Adams, two people with knowledge of the matter said.

Prosecutors last week seized the phones of the two officials — the schools chancellor and the deputy mayor for public safety — and the consultant because they believed the devices might contain evidence of bribery and other crimes, the people said.

Those other crimes, the people said, were fraud and violations of the Travel Act — a federal offense that can encompass a wide range of conduct, including extortion and other violations of state law, and is frequently charged in corruption cases.

The inquiry appeared to be in its early stages, and the outlines of the suspected bribery scheme and whom it may have involved were not immediately clear. But it appeared to center on the consulting firm and its clients.

The investigation was separate from a federal corruption inquiry involving the New York police commissioner and his brother, whose phones were also seized, prompting the administration to seek the commissioner’s resignation. He remained in office as of Tuesday night.

Both investigations spilled into public view after federal agents on Wednesday took the phones of several officials, including the schools chancellor, David Banks, the deputy mayor for public safety, Philip B. Banks III, and their younger brother, the consultant Terence Banks.