FBI raids homes of 2 top deputies for NYC Mayor Adams, NYPD commissioner subpoenaed: Sources
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(NEW YORK) — The FBI conducted searches at the homes of two of New York City Mayor Eric Adams’ closest aides on Thursday, sources familiar with the investigation told ABC News.
The Hamilton Heights home of First Deputy Mayor Sheena Wright, who is engaged to Schools Chancellor David Banks, and the Hollis, Queens, home of Deputy Mayor for Public Safety Phil Banks, were searched as part of an ongoing investigation, the sources said.
“Investigators have not indicated to us the mayor or his staff are targets of any investigation,” the mayor’s chief counsel, Lisa Zornberg, said in a statement. “As a former member of law enforcement, the mayor has repeatedly made clear that all members of the team need to follow the law.”
The FBI declined to comment. A spokesman for the US Attorney’s office for the Southern District of New York also declined to comment.
The FBI seized evidence, including electronics, as part of the searches, according to sources. No charges have been filed.
In addition to the searches at the homes of Wright and Banks, which sources said began Wednesday morning, federal investigators have subpoenaed cell phones belonging to New York Police Commissioner Edward Caban and Tim Pearson, a close adviser to Adams, the sources said.
“The Department is aware of an investigation by the U.S. Attorney’s Office for the Southern District of New York involving members of service. The Department is fully cooperating in the investigation,” an NYPD spokesman said, referring additional questions to the U.S. Attorney’s Office, which declined to comment.
Four high-ranking NYPD officials, including Caban, received subpoenas for their cell phones. Three others in the NYPD received similar subpoenas. All complied and turned over their phones, according to sources.
The subpoenas are part of the same investigation that sent the FBI to search homes belonging to Wright and Banks, the sources said.
Wright and Banks are the highest-ranking Adams administration officials who have had their homes searched by federal investigators.
In 2014, Banks was investigated by federal authorities as part of a separate investigation into NYPD corruption. He was named an unindicted coconspirator in that probe but was never charged. He resigned as chief of department, the highest ranking uniformed position.
Federal officials have previously searched the homes of Brianna Suggs, the mayor’s top campaign fundraiser; Rana Abbasova, his international affairs aide; and Winnie Greco, a special adviser to the mayor and director of Asian affairs.
A source familiar with the matter said Thursday’s searches do not appear to be related to the investigation into whether Adams accepted donations from Turkey in exchange for official favors.
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(NEW YORK) — After waiting six months — and losing $4 billion on paper — former President Donald Trump faces a potential windfall from his social media company.
Half a year after the public company behind Trump’s Truth Social platform went public, the “lockup” agreement that prevented Trump from selling any of his 115 million shares expired on Thursday afternoon.
Beginning to sell his shares could allow Trump to profit handsomely from his stake in the company — which is currently valued at approximately $1.7 billion — but it could crater the stock for the company’s diehard supporters, many of whom invested their money in the company as a sign of their support for the former president.
At the same time, holding onto the investment would be a financial leap of faith for Trump, whose shares comprise a large percentage of his net worth but have lost billions of dollars in value over the last six months.
Asked about the choice last week, Trump vowed not to sell.
“They’re worth billions of dollars, but I don’t want to sell my shares,” Trump said. “I’m not going to sell my shares. I don’t need money.”
Trump’s choice comes amid new financial pressures and a significant reshuffling of his financial portfolio.
While Trump’s net worth has grown to $4.3 billion according to the most recent Forbes estimate, the former president owes over $560 million in civil judgments, which he is actively appealing. The majority of his personal wealth — once built on the namesake properties that shot him to fame — now stems from his shares in his social media company, Trump Media & Technology Group, which have fallen more than 70% since the company went public.
Analysts, meanwhile, have expressed concern about a further decline if Trump loses the November election.
Shares in Trump Media closed at a new low of $14.70 Thursday ahead of the lockup provision expiring, though the company enjoyed a 25% surge last week after Trump announced his plan to hold his shares.
“When he’s promised to do something, he’s kept his word,” said Jerry Dean McLain, a shareholder who purchased a hundred additional shares after Trump’s pledge. “He’s loyal to his followers — to his people — so I don’t have any reason not to believe him.”
‘Nothing like this’
Trump turned to the idea of creating his own social media company in the months following his ban from Twitter and other social media companies after the Jan. 6 attack on the Capitol. Truth Social launched in 2022, billing itself as a beacon for free speech on the internet with larger plans to expand into streaming.
“All of a sudden, I went from being No. 1 to having no voice,” Trump said about the benefit of Truth Social. “I’m not going to let that happen again.”
Despite multiple roadblocks — including a dispute with the company’s cofounders and its special purpose acquisition company paying a fine to settle fraud charges with the Securities and Exchange commission — the social media company went public in March.
Shares in the public company peaked at $66 in April, with analysts comparing the company to so-called “meme stocks” like AMC and GameStop, whose share prices surged based on investor enthusiasm rather than financial metrics.
By the summer, Trump Media’s stock price lingered around $30 before slumping to the teens in September, which some experts still believe is overvaluing the company, which only brought in $836,000 in revenue last quarter — a 30% decline from a year earlier. Based on the company’s cash per share, the stock is overvalued by 1,000%, according to University of Florida finance professor Jay Ritter.
With the company losing millions of dollars, reporting limited revenue, and offering an unproven business model, the stock’s performance has frequently tracked with Trump’s personal wins and losses. When Trump was convicted on 34 counts of falsifying business records in New York, the stock declined 14% in after-hours trading following the verdict. Shares then surged as much as 30% early trading on the Monday after Trump survived an assassination attempt in Butler, Pennsylvania.
“It’s much more of a speculative half-proxy for the former president’s reelection prospects and half kind of a long shot early-stage opportunity to get in on a potential new tech company and social media platform,” said Tyler Richey, an analyst at Sevens Report Research.
While it’s not unusual for a company’s stock price to fluctuate based on its corporate leadership, Trump’s relationship to the value of his company stands alone, according to Mike Stegemoller, a finance professor at Baylor University. Trump is the platform’s most notable user, he attracts new members to the platform, and he is the company’s largest shareholder.
“Publicly traded corporations … are somewhat dependent on personalities, but nothing like this,” said Stegemoller. “You’re getting this asset that generates cash flows, and you’re coupling that with a personality that’s pulling revenue to that asset.”
In regulatory filings, the company has acknowledged the risk of being tied to the former president. If Trump were to sell his shares or begin using another social media platform, the company’s stock value could suffer.
Trump, for his part, has vowed to continue posting on Truth Social.
“I love it. I use it as a method of getting out my word,” Trump said last week regarding the platform.
‘A much more profitable deal’
The lockup agreement that’s kept Trump from selling off his shares in the first six months is an arrangement that’s often used by public companies to prevent company leadership from taking actions that could affect the stock price, according to Ritter.
Trump’s 115 million shares means he owns more than half of the company, so selling those shares — which Trump would have to disclose within two days in a public filing — could trigger a massive selloff and tank the company’s stock price.
“As soon as folks know he’s getting out in any large amount, I would imagine shares would fall,” said Stegemoller.
According to Stegemoller, Trump’s announcement last week that he would not sell his shares is reasonable — not only because Trump likely wants the company to succeed, but also because selling his shares too rapidly could cost him money. Because he holds so many shares, Trump would be unlikely to fully offload them all before the stock price plummeted, forcing him to sell his remaining shares at a lower price.
Alternatively, Trump could slowly sell some of his shares, arrange a deal with a buyer, or use the shares as collateral for loans. Selling some of his shares would allow Trump to still own a controlling interest in the company while diversifying his portfolio, according to Stegemoller.
“Selling slowly over time in order to pull money out of his investment is a much more reasonable deal for him, and a much more profitable deal for him, too,” Stegemoller said.
Although Trump has publicly declared that he plans to hold his shares, executives in the company could consider selling their holdings, which could also impact the stock price.
“They might want to get out as quickly as possible, and rather than sell their shares gradually, it might be a rush for the exit,” said Ritter.
‘I’m not leaving’
Trump has suggested that the company’s sluggish stock performance is partially due to speculation about him stepping away from the company — a notion he tried to dispel last week.
“People think that I’m leaving. That’s why they’re down,” Trump said regarding shares in the company. “It’s different if I leave, but I’m not leaving. I love it.”
And some analysts believe the expiration of the lockup provision could prove to be a turning point for the company.
According to Richey, a recent spike in trading volume and other metrics suggest that the stock price might be reaching a bottom, while Trump’s decision to hold his shares could reassure investors.
Speculation about Trump’s chances of winning in the November election could also help the stock price.
“There’s still money in the markets supporting a Donald Trump win if you’re using the stock price as a proxy for the election outcome,” Richey said.
(SACRAMENTO, Calif.) — A landmark bill to ban some dyes in food served at California public schools, aimed at protecting children’s health, is headed to Gov. Gavin Newsom’s desk to be signed into law after passing the state legislature on Thursday.
Assembly Bill 2316, also known as the California School Food Safety Act, would prohibit six potentially harmful food dye chemicals from being provided in the state’s public schools. It was approved by the California Assembly on Thursday after passing the state Senate earlier in the week.
“California has a responsibility to protect our students from chemicals that harm children and that can interfere with their ability to learn,” Assemblymember Jesse Gabriel, who introduced the legislation back in February, said in a statement Thursday, adding, “This bill will empower schools to better protect the health and well-being of our kids and encourage manufacturers to stop using these harmful additives.”
Gabriel was previously successful in his efforts to ban potentially harmful food and drink additives in products sold throughout the state through the passage of the California Food Safety Act last year. The legislation bans potassium bromate, propylparaben, brominated vegetable oil and Red 3 from food that is manufactured, delivered and sold in the Golden State.
Newsom signed the bill into law last October, making California the first state in the U.S. to ban the additives.
Under the newly passed California School Food Safety Act, Red Dye No. 40, Yellow Dye No. 5, Yellow Dye No. 6, Blue Dye No. 1, Blue Dye No. 2 and Green Dye No. 3 will be banned from food served to students in public schools during regular hours.
The bipartisan bill was supported by the Environmental Working Group and Consumer Reports.
Studies suggest that consumption of the six dyes and colorants banned under A.B. 2316 may be linked to hyperactivity and other neurobehavioral problems in some children, as the California Environmental Protection Agency’s Office of Environmental Health Hazard Assessment outlined in a 2021 report.
While there are still thousands of chemicals allowed for use in our country’s commercial food system, many of those that have been reviewed by the Food and Drug Administration have not been reevaluated for decades. Red 40, for example, was last evaluated for health risks in 1971.
Reports from the American Academy of Pediatrics align with this push to reassess the safety of artificial food coloring.
“Over the last several decades, studies have raised concerns regarding the effect of [artificial food colorings] on child behavior and their role in exacerbating attention-deficit/hyperactivity disorder symptoms,” doctors write. “Further work is needed to better understand the implications of AFC exposure and resolve the uncertainties across the scientific evidence. The available literature should be interpreted with caution because of the absence of information about the ingredients for a number of reasons, including patent protection.”
Dr. Stephanie Widmer, an ABC News medical contributor, board-certified emergency medicine physician and toxicologist, told “Good Morning America” previously, while discussing California’s earlier harmful chemical ban, “These chemicals are all kind of in different foods and all exert different effects and different concerns.”
“Some of them are associated with neurological problems, some are reproductive problems, some have been linked to cancer,” Widmer said at the time. “It really depends on the substance.”
(CHIPPEWA FALLS, Wis.) — More than two dozen people were injured, including three critically, after a wagon overturned at an apple orchard in Wisconsin, authorities said.
The incident was reported Wednesday morning at Bushel and a Peck Apple Orchard in Chippewa Falls.
Elementary school-age children, parents and other chaperones were on a field trip at the time and were on a wagon ride, according to Chippewa County Sheriff Travis Hakes.
A tractor was pulling two wagons at a “low speed” on a public road when the accident occurred, Hakes said.
One of the wagons began to lose control and turn sideways as it descended a hill and overturned, resulting in injuries to both children and adults, Hakes said.
“It’s a traumatic day for a lot of people,” Hakes told reporters during a press briefing Wednesday afternoon.
Emergency personnel were dispatched for a “tractor accident involving two hay wagons with kids and adults,” Chippewa Fire District Deputy Chief Cory Jeffers told reporters.
The fire department activated its mass casualty protocol so that outside agencies could help respond to the incident, Jeffers said. One helicopter from the Mayo Clinic was called in, he said.
Twenty-five individuals were transported from the scene to various agencies, Jeffers said. One patient was transported via the helicopter and nine via ambulance, Hakes said. Some were also transported in personal vehicles, he said.
Three people have life-threatening injuries and five have serious injuries, according to Hakes.
Marshfield Medical Center-Eau Claire received seven patients from the incident who are being treated for minor to serious injuries, a spokesperson confirmed to ABC News.
Hakes said he believes all patients are in stable condition.
Authorities did not release additional details on the victims, including how many were children.
Hakes called the incident “heart-wrenching.”
“As a parent myself, it’s a parent’s greatest fear that something happens to their children,” he said.
He said he responded to the scene and helped calm the children and reunite them with their parents.
“The children were extremely brave, very resilient,” he added.
The scene has since been cleared, Jeffers said. All of the children who were still at the scene have been reunited with their families, he added.
The children attended St. Mark Lutheran School in Eau Claire, the school’s principal confirmed.
“At this point, we are focusing on reuniting the children with their caregivers,” Principal Peter Micheel said in a statement to ABC News. “Whenever we face a challenging time, we commit everything to the Lord’s care and trust his guiding hand.”
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ABC News left a message with the orchard seeking comment.
Chippewa Falls is located about 12 miles northeast of Eau Claire.
ABC News’ Alexandra Faul contributed to this report.
