In March this year, in the Eastern District of New York, federal prosecutors filed charges against several top executives of the non-profit organization Bhrags Home Care, accusing them of engaging in various federal crimes such as kickbacks, embezzlement of public funds, and wire fraud during the period of the New York City immigrant shelter contract without open bidding. The exposure of the case has also raised concerns from the public about the oversight mechanism of the city government’s emergency shelter and immigrant shelter contracts.
According to the federal indictment, Bhrags Executive Director Roberto Samedy and President Ronald Tirelus are alleged to have conspired in two criminal schemes: misappropriating approximately $1.3 million of organizational funds, and setting up a kickback mechanism through subcontractors to divert city funds originally allocated for security services at shelters for the homeless into private pockets. The prosecutor pointed out that there are still some aspects of the fund flow that have not been fully clarified.
However, apart from the implicated organization itself, questions have also been raised by the public regarding what actions were taken by the city’s Comptroller’s Office, which is responsible for overseeing all city contracts.
During the early stages of contract formation, the emergency procurement mechanism was activated due to a sudden spike in demand for homeless shelters. Bhrags first obtained the shelter contract in the fall of 2022, which expanded from one contract to five in just a few months, all without competitive bidding. According to city procurement rules, major contracts usually require competitive bidding and approval by the Comptroller, but in emergency situations, the Comptroller can grant exemptions.
In July 2022, then-City Comptroller Brad Lander, at the request of Mayor Adams, initiated the emergency procurement process and jointly approved all “emergency” contracts with the city’s chief legal counsel, allowing Bhrags to be hired by the city without background checks.
An investigation by The City media outlet revealed that at the initial outbreak of issues related to Bhrags, no targeted special audit procedures were immediately initiated, and the primary risk information mainly came from civil lawsuits by cooperating subcontractors and subsequent internal reports within the city government.
In December 2023, subcontractor Fort NYC Security filed a lawsuit accusing Tirelus of directing them to funnel security fees paid by the city through a shell company he controlled, splitting the proceeds fifty-fifty. Additionally, the company alleged that Bhrags owed over $600,000 in security service fees and questioned the whereabouts of some city allocations.
In early 2024, the Department of Homeless Services (DHS) canceled the subcontractor’s qualification upon learning of the accusations, but Bhrags’ contract with the city not only remained intact but continued to expand. Data shows that from February to June 2024, DHS increased Bhrags’ approved contract amount from $31.4 million to $68.5 million. In 2025, the Comptroller’s Office approved contract amendments and additional funding.
Former City Comptroller Scott Stringer stated in a media interview that once significant integrity issues arose with a supplier, an audit should have been immediately initiated and the contract reassessed. “This contract should have been rejected from the start, and a thorough due diligence investigation should have been conducted,” Stringer said.
The turning point came in September 2024.
At that time, the Department of Social Services (DSS), responsible for overseeing the DHS, implemented a Corrective Action Plan for Bhrags and officially reported the situation to the Comptroller’s Office. The document not only mentioned kickback allegations but also listed conflicts of interest and financial management issues.
Simultaneously, the Department of Social Services forwarded the relevant information to the New York City Department of Investigation (DOI). The DOI subsequently launched an independent investigation and collaborated with the Federal Bureau of Investigation (FBI) and the Brooklyn Federal Prosecutor’s Office to gather evidence. After months of investigation, on March 31 of this year, federal prosecutors formally filed charges.
Rand’s campaign spokesperson, Emily Minster, declined to comment on his actions upon learning of the corruption allegations against Bhrags and referred The City to current Comptroller Mark Levine. However, Levine’s team stated that the contract began in May 2023, and the Comptroller’s Office only received notification of the corruption allegations in September 2024, when Levine took office this year, indicating that the issues occurred before his tenure.