LI Man Diverted 'Tens Of Millions' From COVID Program: Feds

BROOKLYN, NY — Three men, including a Long Island resident, were indicted on charges connected to illegally diverting tens of millions of dollars from a COVID-19 emergency housing program to enrich themselves, prosecutors announced Thursday.

Christopher Dantzler, 49, of Baldwin, was arraigned on conspiracy to commit wire fraud, honest-services wire fraud, money laundering conspiracy, conspiracy to violate the Travel Act and the use of a facility of interstate commerce in aid of commercial bribery, U.S. Attorney John Durham said

Dantzler was arrested on Long Island on Thursday morning; two other men were also charged in the scheme, federal officials said.

"The defendants’ brazen and illegal kickback scheme stole money from the City of New York that was intended to provide emergency housing and support services during the pandemic," Durham said. "Shamefully, the defendants saw the pandemic as an opportunity to line their pockets with stacks of cash, finance a luxury vehicle, purchase homes and pay off personal debts."

Julio Medina, who was also charged, founded and served as the executive director and chief executive officer of a non-profit organization that provided reentry services to formerly incarcerated people, prosecutors said.

The organization entered into agreements with various hotels to operate as reentry hotels under the Emergency Housing Program. In total, between June 2020 and December 2023, the organization received approximately $122 million in public funds from New York City Mayor's Office of Criminal Justice to operate the Emergency Housing Program at these hotels, Durham said.

Dantzler and Weihong Hu with, another person charged, each operated or controlled businesses that received tens of millions of dollars in public funds from the organization under the Emergency Housing Program, federal officials said. Dantzler’s company purported to provide security services at the reentry hotels but was not a licensed security company and did not, in fact, provide security services, the U.S. Attorney said.

Medina solicited and accepted bribes and kickbacks from Dantzler and Hu in exchange for Medina providing business through the Organization to Dantzler’s and Hu’s respective businesses under the Emergency Housing Program, federal officials said.

Among other bribes and kickbacks, Dantzler and Hu purchased Medina an approximately $1.3 million town house; Dantzler paid to purchase and renovate a house for Medina for approximately
$750,000, Durham said.

Dantzler’s security company received approximately $21 million in public funds from the
Organization under the Emergency Housing Program, of which Dantzler personally retained
approximately $9 million in public funds, prosecutors said.

"This alleged kickback scheme abused a program designed to provide a vulnerable
population with healthier, unexposed lodging alternatives, to finance enhancements to the
defendants’ lifestyles," James E. Dennehy, assistant director in charge, FBI New York Field Office, said. "The FBI will never tolerate any individual who twists public programs into a mechanism to sell services for personal profit."

Sanford Talkin, attorney for Dantzler, had no comment about the indictment.