Three individuals have been charged with operating a fraudulent scheme that syphoned millions from New York City's COVID-19 emergency housing program. Julio Medina, founder and CEO of a nonprofit, along with Christopher Dantzler and Weihong Hu, faced an indictment for wire fraud, bribery, and money laundering among other charges, with the announcement made after a federal court in Brooklyn unsealed the indictment yesterday, as confirmed by the U.S. Attorney's Office for the Eastern District of New York.
The trio allegedly diverted funds meant to assist the vulnerable during the pandemic, setting up a kickback scheme that channeled public money intended for emergency housing and support services into their own coffers, financing luxury purchases and personal debts according to United States Attorney John J. Durham "The defendants’ brazen and illegal kickback scheme stole money from the City of New York that was intended to provide emergency housing and support services during the pandemic," Durham stated, condemning the exploitation of a nonprofit organization for personal gain, as reported by the Department of Justice.
New York's Department of Investigation Commissioner, Jocelyn E. Strauber, added to the chorus of disapproval, charging that "the defendants—an Executive Director of a City-funded nonprofit and the principals of the nonprofit’s subcontractors—engaged in and concealed a bribery and kickback scheme, pocketing millions," money that had been designated for emergency housing and support services, as detailed by the Department of Justice. FBI Assistant Director in Charge, James E. Dennehy, also highlighted the egregious nature of the crime, emphasizing that the FBI will not tolerate the manipulation of public programs for personal profit. Dantzler was arrested on Long Island, Hu in Manhattan, and Medina in the Bronx, with their arraignment scheduled for the afternoon before United States Magistrate Judge James R. Cho.
According to accusations in the indictment, Medina's organization received about $122 million from June 2020 through December 2023 to operate a housing program aiming to reduce COVID-19 spread in jails Dantzler and Hu, running their respective businesses, were purportedly awarded contracts through said program, with Medina accepting bribes that included purchasing him a $1.3 million townhouse, a luxury $107,000 vehicle, and another home renovation worth approximately $750,000. In a telling photograph revealed in court documents, Hu was shown handing Medina a stack of wrapped cash in exchange for two checks from the non-profit organisation, made out to Hu's catering company, for over $187,000, as the indictment figures demonstrate how Dantzler's and Hu's companies collectively received around $51 million of the earmarked funds for their businesses, enriching themselves substantially with $21 million and $17 million respectively from the partnerships.
The charges against Medina, Dantzler, and Hu remain allegations until proven in court, as the defendants are presumed innocent until guilty, the handling prosecutors, Assistant United States Attorneys Meredith A. Arfa, Eric Silverberg, and Sean M. Sherman, along with Paralegal Specialists Kavya Kannan and Rebecca Roth represent the government's interest in this public integrity case.
