The CEO of a telecommunications building agency entangled in a federal influence-peddling investigation focusing on two of Mayor Eric Adams’ former prime officers — David and Philip Banks — and their brother, Terence, was indicted Thursday on company fraud expenses.
Anthony Tepedino, CEO of Allstate Gross sales Group (ASG), was a consumer of Terence Banks’ consulting agency, Pearl Alliance. Banks agency is the topic of an ongoing probe by the Manhattan U.S. Lawyer Jay Clayton’s public corruption unit.
The indictment introduced by Clayton charging Tepedino with steering tens of millions of {dollars} from his agency into shell firms he managed famous that the alleged fraud scheme got here to a sudden halt on Sept. 4, 2024 — the day the FBI seized the cell telephones of Tepedino and “others.” That very same day, the FBI and metropolis Division of Investigation (DOI) confiscated the telephones of Terence, David and Phil Banks in a probe specializing in whether or not Terence gained shoppers by selling his connections to his siblings.
Prosecutors in Clayton’s workplace in current months have additionally questioned witnesses about Terence Banks’ hiring by ASG.
The indictment focuses completely on company fraud and doesn’t point out any interplay with any authorities entity, however DOI Commissioner Jocelyn Strauber is quoted in Clayton’s press launch. A DOI spokesperson declined to touch upon the division’s function within the Tepedino expenses.
As he started his time period at Metropolis Corridor in January 2022, Mayor Adams appointed David Banks faculties chancellor and named Philip Banks as his deputy mayor for public security. Terence Banks didn’t win a job on the Adams workforce however quickly after shaped Pearl Alliance, listed as a “values pushed authorities and neighborhood relations agency forging strategic partnerships between enterprise and authorities.”
It’s not clear precisely what Terence Banks did for ASG, however Tepedino was quoted on Pearl’s web site stating: “Your organization wants a companion like Pearl Alliance that will help you overcome obstacles resulting in profitable venture execution prefer it did for Allstate Gross sales Group.” The web site was taken down shortly after the Banks’ brothers’ telephones have been seized by legislation enforcement.
Over the summer season, Manhattan federal prosecutors questioned Patricia Lynch, a veteran New York lobbyist who’d been employed by ASG to foyer the Adams’ administration on unspecified “expertise” points, based on a supply aware of the investigation. Prosecutors requested Lynch about Terry Banks, based on the supply. Lynch mentioned she’d dropped ASG as a consumer after studying the agency had employed Terry Banks.
On Thursday the case was unsealed and assigned to Manhattan federal decide Margaret Garnett, who instantly recused herself, apparently on account of DOI’s involvement. Garnett was DOI commissioner below Mayor Invoice de Blasio and has stepped away from instances involving her former company.
THE CITY has reported that Phil Banks admits that when he was deputy mayor, he mentioned one other considered one of Terry’s shoppers, SaferWatch, with him, about putting in the agency’s apps at school security officer telephones. David Banks additionally met with one other considered one of Terry’s shoppers, 21stCentEd, then subsequently appeared in a promotional video for the agency, which additionally gained 138 no-bid contracts totaling $2 million from the town college system.
Tepedino’s lawyer, Kevin Marino, didn’t return THE CITY’s name. Terry Banks’ legal professional, Timothy Sini, didn’t reply to THE CITY’s emailed request for remark.
