Federal authorities ramp up investigation into NYC government corruption: Sources

Federal authorities on Friday ramped up their investigation into possible corruption in New York City government, interviewing police officials at a building next to police headquarters and seizing additional phones, sources familiar with the matter told ABC News.

The escalation comes one day after officials confirmed the investigation had already reached into the inner circle of New York Mayor Eric Adams.

Federal prosecutors in Manhattan have declined to disclose details about what they are investigating, but sources said one focus involves city contracts and a second involves the enforcement of regulations governing bars and clubs.

Adams on Thursday insisted he was aware of no "misdoings" by anyone in his administration and pledged cooperation with the ongoing investigation.

"I say over and over again, as a former member of law enforcement, I'm very clear. We follow the rules. We make sure that we cooperate and turn over any information that is needed and it just really would be inappropriate to get in the way of the review while it's taking place," Adams said in an interview with CBS New York. "I am not aware of any misdoings and I'm going to, again, follow the rules and I will continue to tell the team to do that. And that's what they have been doing, to my knowledge."

Adams' chief counsel said the mayor is not believed to be a target. No charges have been filed.

This week, federal agents searched the homes of Deputy Mayor Phil Banks, Deputy Mayor Sheena Wright and Schools Chancellor David Banks. Federal authorities also seized phones belonging to Police Commissioner Edward Caban and other NYPD officials. On Friday, sources said investigators sought the phones of additional police officials, including precinct commanders in Manhattan.

Caban's family has connections to nightlife. Richard Caban, a former NYPD lieutenant, owned a now-shuttered Bronx restaurant, Con Sofrito. Caban's twin brother, James Caban, a former NYPD sergeant, owned a Bronx apartment building that once had a bar on the first floor named Twins.

Timothy Pearson, a close adviser to the mayor and retired NYPD inspector, also had his phone subpoenaed, according to sources. He works for the city's Economic Development Corporation but has wide-ranging responsibilities in the administration.

The law enforcement actions this week appear separate from the ongoing investigation by the same federal prosecutors into fundraising in the 2021 mayoral election and the possible influence of the Turkish government.