Fortelling Adams' future

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New York City Mayor Eric Adams arrives for a court hearing.

Gov. Kathy Hochul said Eric Adams needs to do more to restore confidence in City Hall, while prosecutors said more charges against the mayor could be coming. | Chase Sutton/POLITICO

THANKS FOR LISTENING: Gov. Kathy Hochul is pleased with Mayor Eric Adams’ recent steps to restore confidence in city government, following her demand to clear his administration of questionable actors during a frank phone call with him on the eve of his indictment.

But today she made clear he needs to do more.

“I'm working to make sure that the key positions working with the mayor are filled with people that are going to be responsible, but it is ultimately his decision to make,” she told reporters Wednesday. “I'm just letting him know that we're monitoring the situation. We expect changes. That's not a secret. And changes are beginning.”

The governor has the unilateral power to remove the mayor from office — a difficult position that would force her to reckon with legal, racial and political questions swirling around a fellow Democrat she generally considers an ally.

On Wednesday she gave the mayor kudos for firing Timothy Pearson — the highly-paid top adviser to the mayor embroiled in several investigations and the subject of four lawsuits alleging sexual harassment in the workplace. Pearson announced his resignation Monday night.

While the governor was offering a bit of a reprieve to the mayor, Adams was wrapping up his appearance in federal court for his criminal proceedings.

And while Hochul foretold good “changes” for the future of the city and the mayor’s administration, federal prosecutors were forecasting storm clouds.

Prosecutor Hagan Scotten of the U.S. Attorney’s Office for the Southern District of New York told Judge Dale Ho today that it’s “likely” others will be charged in connection with Adams’ alleged corruption — and more charges against Adams himself could be coming as well.

Alex Spiro, Adams’ lawyer, shot back at the revelation, saying the comments show the current charges against Adams are weak.

“The prosecution is desperately now saying they ‘could’ bring a new case because they are suddenly facing dismissal of their actual, flawed case and sanctions for misconduct,” Spiro said. “This is the sort of nonsense that prosecutors say when they don’t have a real case. If they had a real case, they would have brought it.”

Back in Hochul’s Midtown office, the governor would not respond to questions about who she wanted to see walk the plank next in City Hall.

A source with knowledge of the situation indicated the governor’s goal is, more broadly, to ensure New Yorkers feel confident in those running the city.

She is also likely cognizant that her political strength is being publicly tested at a critical time — her opponents are angry over her recent congestion pricing decision, she will be held partially responsible for the outcome of several battleground House races and her former boss, Andrew Cuomo, looms.

When Hochul was asked if she thought Phil Banks, the deputy mayor of public safety whose home and personal devices were searched by federal prosecutors, should remain in his post, she balked.

“This departure is a good first step,” she said, referencing Pearson. “We’re watching to see what else will unfold in the next few days.” Jason Beeferman

 

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From the Capitol

Governor Kathy Hochul makes a domestic violence funding announcement.

Gov. Kathy Hochul called Mayor Eric Adams a "strong Democrat" as Adams deals with the fallout of his criminal indictment | Susan Watts/Office of Governor Kathy Hochul

ADAMS FALLOUT: As she tries to help Democrats retake power in the House, Hochul is not worried the blossoming legal troubles facing Adams will spill into key districts.

“I’m not anticipating this will bleed over in any significant way,” Hochul told reporters during a news conference in her Manhattan office.

Hochul has been the face of an effort to aid down-ballot House candidates in New York — including pivotal seats on Long Island, the Hudson Valley and central New York.

Most of the seats Democrats went to flip are in the New York City media market — and voters there are likely getting a heavy dose of Adams news each evening.

But the governor insisted the races won’t be won or lost based on the Adams travails.

“Every single race runs on its own merits,” she said. “We have strong candidates. That’s how you win, you have strong candidates.”

There’s likely some truth here. Battleground district Republicans have linked Democrats to issues like the migrant crisis, and corruption cases rarely become key concerns for voters.

Adams, meanwhile, has not shied away from welcoming the support of former President Donald Trump following his criticism of the Biden administration’s migrant policies.

Today, Hochul dismissed questions over whether Adams remained in good standing with the party.

“I’m not going to speculate on what the thought process was behind it,” she said. “I believe that Mayor Adams is a strong Democrat.” Nick Reisman

 

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FROM CITY HALL

In this courtroom sketch, New York Mayor Eric Adams' defense attorney Alex Spiro speaks as Eric Adams is seated.

In this courtroom sketch, Mayor Eric Adams' defense attorney Alex Spiro, left, speaks at the podium as Adams is seated at right at the defense table during a hearing in Manhattan federal court today. | Elizabeth Williams/AP

LAWYERING UP, LAWYERING DOWN: Three city employees are getting legal representation funded by the government amid the multiple criminal investigations right now — but the Law Department won’t say who they are.

The employees are being asked to respond to confidential subpoenas, so their names will remain “undisclosed so as to not impede ongoing investigations,” acting Corporation Counsel Muriel Goode-Trufant wrote in a letter Wednesday. She was responding to a request for more transparency on legal representation from City Council Oversight Chair Gale Brewer, first reported in Playbook.

The three employees are actually represented by the law firm Yankwitt LLP, which the city retained at a rate of up to $600 per hour. Yankwitt declined to confirm, or comment. The city sometimes hires outside firms, rather than having city lawyers do the work themselves.

But one of those arrangements is ending, Goode-Trufant added. Spiro, who is now representing Adams in his federal bribery case, is withdrawing from Adams’ sexual assault lawsuit, the Daily News first reported.

Spiro wrote in a court filing that the Conflicts of Interest Board “raised concerns” about his firm representing Adams in both cases — paid for by the city in one case, and Adams himself in the other. The Law Department will keep representing Adams in the Adult Survivors Act complaint, a spokesperson said. Jeff Coltin


MILKING THE CLOCK: ​​Employees of the New York City Sheriff’s Office are grossly inflating their salaries through unchecked overtime, costing taxpayers almost $5,000,000 more than budgeted for 2024, according to city Comptroller Brad Lander.

This comes from a letter Lander sent the Department of Finance, which oversees the Sheriff’s Office, in which he noted that so far this year, the sheriff’s office has outspent its overtime budget by 542 percent. In 2023, the ten highest paid employees of the agency earned a collective $1,010,739 in overtime pay.

Lander’s letter comes just days after POLITICO first reported the city’s Department of Investigation is probing the sheriff.

“The Sheriff’s Office does not set realistic overtime budgets and does not limit overtime spending to adopted budget amounts,” Lander wrote, adding that the agency “does not properly manage and modify the budget on an ongoing basis during the fiscal year.”

The sheriff’s office requested an additional $835,000 for its existing $897,064 overtime budget in 2023.

But at the time it made the request, the office had already exceeded its annual overtime budget by $2.1 million.

By the end of 2023, overtime spending jumped to more than $6 million dollars — a 570 percent increase.

Reached by phone, Sheriff Anthony Miranda told POLITICO that the figures in Lander’s letter seemed wrong, but he did not elaborate further than that.

“As New York City has grappled with the proliferation of illegal smoke shops, a rise in unlawful ‘ghost vehicles,’ a global pandemic, and more, the Sheriff’s Office has met the moment by deploying all necessary resources to protect public safety,” said City Hall spokesperson Liz Garcia. She added that, “the Sheriff’s Office and the Department of Finance will continue to work with the Office of Management and Budget regarding budgeted overtime.”

Ingrid Simonovic, president of the union that represents sheriff's employees, said the additional overtime “should come as no surprise.”

“We are now working tours on the weekend as part of the requirements of Operation Padlock,” Simonovic told POLITICO, referring to the sheriff’s crackdown on unlicensed cannabis shops across the city. “Instead of hiring more deputies, Sheriff Miranda hired 11 managers, who serve no real purpose, instead of focusing on hiring essential personnel who could do the day-to-day work.”

On December 9, 2023, 127 employees of the sheriff’s office reported for mandatory training, billing the city more than $60,000 in a single day for a collective 1,117 hours worked — an average of nine overtime hours per employee.

Last week, city investigators searched the sheriff’s office facility in Queens after “receiving a report from the Department of Finance about unvouchered cash at that location,” according to a spokesperson for DOI.

News of the search came the same day prosecutors with the Southern District of New York unsealed an indictment against Mayor Eric Adams. —Timmy Facciola

 

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AROUND NEW YORK

PHONE BAN ON HOLD: Outgoing New York City Schools Chancellor David Banks says that he won’t pursue a cell phone ban in the immediate future. (New York Post)

JUMAANE WILLIAMS’ FOREIGN DONOR: A donor implicated in the Adams’ indictment gave political contributions to Public Advocate Jumaane Williams, who is next in line to be mayor should Adams leave. (Wall Street Journal)

MORE ROOM AT THE INN: The Hotel Association of New York City withdrew its opposition to a hotly debated City Council bill after its sponsor agreed to implement changes to the legislation sought by the trade group. (POLITICO Pro)

Missed this morning’s New York Playbook? We forgive you. Read it here.

 

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