Gothamist
A non-profit newsroom, powered by WNYC.
Gothamist
Listen Live
News
Company tied to brother of top Adams officials didn’t competitively bid contract, comptroller says
By
Charles Lane
Published Sep 19, 2024
Share
FacebookTwitterRedditEmail
Never miss a story
Email address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .
Courtesy Ed Reed/Mayoral Photography Office
By
Charles Lane
Published Sep 19, 2024
Share
FacebookTwitterRedditEmail
We rely on your support to make local news available to all
Make your contribution now and help Gothamist thrive in 2026. Donate today
Gothamist is funded by sponsors and member donations
New York City’s Administration for Children’s Services withdrew a contract from a vendor with ties to high-ranking City Hall officials after city Comptroller Brad Lander raised numerous red flags about the potentially favorable deal, according to a letter obtained by Gothamist.
According to the contract rejection letter sent by the comptroller on Tuesday, ACS accepted a bid from an IT support company once listed as a client on the now-defunct website of a consulting firm, The Pearl Alliance, founded by Terence Banks, without giving other companies a chance to compete for the work, which involved maintaining data storage hardware for the agency.
The letter also said ACS allowed Derive Technologies to submit its bid late. It failed to complete required paperwork related to campaign donations and didn’t give Lander’s office enough time to review the contract, according to the letter, which Gothamist obtained through a Freedom of Information Law request.
Banks is the brother of two high-ranking Adams administration officials: Deputy Mayor for Public Safety Phil Banks and Schools Chancellor David Banks. Federal prosecutors in Manhattan are investigating Terence Banks and his company in connection with a suspected bribery scheme, according to the New York Times.
The FBI recently raided the homes of Phil and David Banks and seized their phones. Derive did not immediately respond to messages seeking comment on Thursday.
An ACS official told Gothamist that the agency is rebidding the contract due to the comptroller's concerns. The official said ACS conducted a "mini-bid" — a more limited bidding process — and Derive was the only company that applied.
According to officials, Derive’s one-year contract with ACS was valued at roughly $55,000 and required the company to provide maintenance and on-site support for data storage hardware.
According to the letter, the contract started on July 1, 2024, which predates the news that the Banks brothers were under federal investigation.
The letter shows that the comptroller raised concerns about “inconsistencies and defects” in how ACS approved the contract, leading to the comptroller rejecting the contract.
According to the letter, ACS didn’t open the bidding to other companies — an integral part of the process to encourage competition and reduce the cost of contracted services to taxpayers. The letter indicates that ACS claimed to have solicited bids from companies, but one unnamed company said it never received the bid request.
The letter also noted that it was unusual for ACS to accept Derive’s bid two days after the bid window had closed.
Additionally, the letter stated that ACS submitted the contract for the comptroller’s review after the contract had already gone into effect. ACS also failed to complete paperwork indicating that Derive complied with city campaign donation requirements for government vendors, the letter said.
There’s no evidence that ACS skewed the bid to help the company or that Derive actually retained Terence Banks. Another company listed on his website told Gothamist that it had never worked with him.
Terence Banks’ attorney, Tim Sini, told Gothamist that his client is not a target of the bribery investigation. The distinction, however, does not mean Banks did nothing wrong.
Tagged
new york city
Politics
Charles Lane
Charles is a Day-of reporter focused on breaking news and enterprise. He’s very friendly and can be reached at [email protected], or more securely on whatsapp/signal 631-295-6715
Read more
Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
MORE news
Central Park birders, others remember 63-year-old woman killed in park
People who said they knew her described her as an artist and a familiar presence in the Ramble.
By
Charles Lane
Published Sep 28, 2026 at 7:04 p.m. ET
Dump truck driver hits and kills cyclist on 34th Street in Midtown, NYPD says
It's the latest in a string of hit-and-run deaths in the city in recent months.
By
Liam Quigley
News
Dump truck driver hits and kills cyclist on 34th Street in Midtown, NYPD says
It's the latest in a string of hit-and-run deaths in the city in recent months.
By
Liam Quigley
New ingredient mandated for Latin American kitchen, restaurant plates in NJ
By
Arya Sundaram
A Brooklyn jail cell filled with smoke. The emergency button failed, a lawyer said.
By
Samantha Max
Crews launch tunnel machines to dig first new Hudson River rail tunnels since 1910
By
Michael Sol Warren
Never miss a story
Catch up on the most important headlines with a roundup of essential NYC stories, delivered to your inbox daily.
Sign upEmail address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .