The Justice Department has opened a criminal investigation into funding and operations at two Manhattan hotels being used as migrant shelters, according to several reports.
Federal prosecutors sent subpoenas to the Roosevelt Hotel, which was converted into a migrant shelter and intake center, as well as the Stewart Hotel, which was transformed into a migrant shelter, according to CBS News.
Prosecutors are seeking information on people who have stayed there, including their names and identifying information.
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As part of the investigation, prosecutors also issued a subpoena to the Hotel Chandler, although this facility is being used as a homeless shelter and not a migrant shelter, according to reports.
The subpoenas, issued by the Southern District of New York, reference an alleged violation of federal immigration law, according to Fox 5 NY, which reported that the subpoenas were sent to the hotels and not city officials.
It asked the hotel for the names of entities and individuals responsible for the “funding and management of the illegal immigrant/migrant shelter program,” as well as any contracts or agreements related to it, the New York Times reports.
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A spokesperson for Mayor Eric Adams told the outlet it cannot comment on any type of federal investigation. Fox News Digital has reached out to the mayor’s office and the Justice Department for further information.
There are currently fewer than 45,000 migrants in the city’s care, down from a high of 69,000 in January 2024. New York City taxpayers have forked out billions of dollars to pay for housing for more than 232,000 who have arrived in New York City since the spring of 2022.
The Roosevelt Hotel, which has around 1,000 rooms, has processed more than 173,000 migrants since its opening in May 2023 and has become a focal point of the city’s migrant crisis over the last two years, since it was the first stop for many border crossers.
According to reports, New York City agreed to pay up to $220 million to the hotel, which is owned by the government of Pakistan. The deal was reportedly part of a $1.1 billion IMF [International Monetary Fund] bailout package to help Pakistan avoid defaulting on their international debt, according to former investment banker and author John LeFevre.
Adams has announced that the shelter will close soon, with the New York Post reporting a closure time of June.
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