realestate

City Officials Face Corruption Probe Over CRE Leases

New York City Mayor Eric Adams' administration faces corruption probe tied to commercial real estate.

N
ew York City Mayor Eric Adams' administration is under scrutiny in another investigation tied to commercial real estate. The Manhattan District Attorney's office is probing possible corruption, including bribery and money laundering, across the city's commercial property leases. At the center of the probe is Cushman & Wakefield broker Diana Boutross.

    The investigation has connections to a previous case where investigators seized the cell phone of Jesse Hamilton, deputy commissioner of real estate at the Department of Citywide Administrative Services. Boutross was among those whose phones were confiscated by state officials. She and Ingrid Lewis-Martin, the mayor's chief adviser, are reportedly friends and were confronted upon returning from vacation in Japan.

    Boutross has managed an account connected to DCAS' office leases, which could raise questions about potential conflicts of interest. A year ago, Cushman tapped her to oversee a city account for finding office and industrial leases, potentially generating big commissions. City Hall maintains that employees are held to the highest ethical standards and must follow the law.

    Manhattan DA Alvin Bragg Jr. is leading the investigation, which appears to be in its early stages. It's unclear if landlords who lease to the city could be implicated. This probe adds to at least five public investigations facing Adams' administration, with a majority being conducted by federal officials.

City officials under investigation for corruption in commercial real estate lease deals.