ALBANY, NY — Joseph Hernandez, Republican candidate for New York State Comptroller, today hailed a sweeping federal corruption probe into New York’s migrant shelter system to uncover political favoritism, insider dealing, corruption within nonprofits, and a lack of oversight over billions in taxpayer dollars.
Federal authorities previously executed a March 19 search warrant as part of an investigation into whether New York City Council Member Farah Louis, her sister Debbie Louis (former aide to Governor Kathy Hochul) and Edu Hermelyn (husband of Brooklyn Democratic Party Chair Rodneyse Bichotte Hermelyn) were involved in a scheme to steer migrant shelter contracts in exchange for bribes or kickbacks.
Now, in a significant escalation, four individuals have been formally charged for stealing $1.3 million from the BHRAGS Home Care Inc., among other charges. The nonprofit is a politically connected nonprofit that has received more than $200 million in city contracts tied to migrant shelter operations.
“This is exactly the kind of pay-to-play corruption that New Yorkers are sick of,” said Hernandez. “Government insiders appear to have been steering massive taxpayer-funded contracts while everyday New Yorkers are left footing the bill.”
The controversy has grown even more serious following additional reporting by independent journalist Leeroy Johnson highlighting pay-to-play campaign donations to Hochul.
It was revealed that a contractor identified as Garner Environmental Services Inc., who reportedly held over $600 million in migrant shelter contracts issued by the state, also donated $5,000 to Governor Hochul’s campaign.
“This raises serious questions about whether taxpayer-funded contracts are being handed out based on political connections rather than merit, as well as bringing into question who we’re giving tax dollars to,” Hernandez said. “When the same individuals receiving massive public contracts are also donating to elected officials, that is a red flag for every New Yorker.”
Hernandez criticized Governor Hochul, Comptroller Tom DiNapoli, and Albany Democrats for creating an environment where corruption is the norm.
“This is what one-party rule produces: no oversight, no accountability, and no consequences,” Hernandez said. “For years, DiNapoli has failed to act as an independent watchdog, allowing billions in taxpayer dollars to flow unchecked.”
As State Comptroller, Hernandez pledged to launch an aggressive investigation into migrant shelter spending and restore accountability to state finances.
“We don’t just need to investigate corruption after it happens, we need to stop it before it starts,” Hernandez said. “As Comptroller, I will proactively identify red flags, flag suspicious contracts in real time, and ensure bad actors never get access to taxpayer dollars in the first place.”
Hernandez added that any evidence of wrongdoing uncovered through audits would be referred for criminal prosecution.
“New Yorkers deserve transparency, accountability, and a government that works for them,” Hernandez said. “I will follow the money, expose corruption, and make sure those responsible are held accountable.”