Exodus Founder, Adams Fundraiser Charged in Kickback Scheme

Federal prosecutors unveiled charges in an alleged corruption scheme involving hotel contracts, centered on the misuse of COVID-19 emergency housing funds meant to help former Rikers Island inmates.

Weihong Hu, a prominent hotel owner and political fundraiser for Eric Adams, is accused alongside Julio Medina, founder of Exodus Transitional Community, and security firm owner Christopher Dantzler in what prosecutors describe as an elaborate kickback operation, The City reported.

The scheme allegedly involved over $120 million in public funds being steered towards Exodus.

Medina allegedly received kickbacks from Hu and Dantzler, including two properties: a $1.3 million Washington Heights townhouse and a $750,000 upstate home. Prosecutors allege these properties’ true ownership was obscured through co-conspirators.

In exchange, Exodus allegedly paid out $12 million in public funds to Hu’s hotels and another $17 million to a construction firm she repurposed as a catering company that provided meals to participants in the inmate hotel program, which won a no-bid contract from the de Blasio administration at the start of the pandemic.

Prosecutors obtained footage showing Hu handling an envelope of cash to Medina shortly after Exodus issued nearly $188,000 in checks to her associated business.

Medina ultimately funneled $51 million in public funds to companies belonging to Hu and Dantzler, according to prosecutors. Medina allegedly passed on the costs of the bribes and kickbacks to taxpayers by submitting inflated invoices to the city government. He also allegedly tried to cover up the scheme and threatened co-conspirators.

Hu, who owns three Queens hotels and is developing two more in Midtown Manhattan, secured approximately $16 million annually in city contracts, according to documents. Those contracts began under de Blasio, but have expanded under Eric Adams, for whom she hosted a mayoral campaign fundraiser in June 2023, her third on Adams’ behalf.

The investigation also exposed questionable dealings involving Hu’s Manhattan development projects. At one project, a stop work order was reversed late at night after intervention from a friend of Adams.

Another project resumed construction in 2022 despite previous violations for demolishing protected affordable housing units, though it was later halted again following media scrutiny.

All three defendants have pleaded not guilty. Hu was released on a $20 million bond with her passport seized, while Medina and Dantzler were released on $250,000 and $750,000 bonds, respectively.

— Holden Walter-Warner