The U.S. Department of Justice (DOJ) is currently investigating potential violations of federal immigration laws and questionable financial activities at two New York City hotels used as migrant shelters. This development reflects complex legal and financial entanglements involving city contracts and international funding.
Breitbart reported that a sweeping criminal probe is examining the Roosevelt Hotel and the Stewart Hotel over their role in housing thousands of illegal immigrants.
The investigation was triggered by the significant influx of migrants into New York City, causing logistical and financial strain on local services.
Mayor Eric Adams has publicly stated that the city can no longer handle the increasing numbers of border crossers and undocumented migrants due to overcrowding issues.
The two primary focuses of the DOJ inquiry are the Roosevelt Hotel and the Stewart Hotel, which have been converted to migrant shelters to manage the flow of new arrivals. Details have surfaced regarding substantial financial commitments by NYC to these establishments, particularly the Roosevelt Hotel, which is owned by the government of Pakistan.
Former investment banker and author John LeFevre revealed that, "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 bailout package to help Pakistan avoid defaulting on its international debt."
The Hotel Chandler, while not used as a migrant shelter, received a subpoena in the investigation, suggesting that the scope of the DOJ's concerns extends beyond just the immediate accommodations for migrants.
A review by the Department of Government Efficiency (DOGE) found that FEMA had made a $59 million payment intended for housing illegal aliens in luxury NYC hotels, raising questions about the management of federal funds dedicated to migrant care and shelter.
Former White House press secretary Karine Jean-Pierre strongly denied these allegations, stating, "It’s just categorically false. It is not true."
The potential misuse of these funds is central to the DOJ's investigation as they seek to understand whether federal laws were breached in the financial operations surrounding the migrant shelters.
The Roosevelt Hotel has been a significant player in this unfolding situation, having processed approximately 170,000 migrants since its conversion into a shelter in 2023. This high turnover highlights the extreme demand placed on such facilities amid soaring arrival numbers.
With the ongoing investigation, plans have emerged regarding the future of these facilities. The Roosevelt Hotel, for instance, is slated to close within the next few months, and its services will be redistributed among other facilities capable of providing support to migrants.
Moreover, by June, the city plans to shutter 53 shelters, including the Roosevelt Hotel, as part of a broader strategy to manage migrant accommodation more effectively.
This decision reflects a comprehensive reassessment of how the city handles the migrant crisis, aiming for a balanced approach between immediate shelter needs and long-term housing solutions.
New York City's handling of such an enormous influx since early 2022 has had dramatic impacts on local infrastructure and services, with over 160,000 migrants recorded as having arrived in the city. The adjustments in shelter operations and city contracts are critical components of the city's response to the DOJ's findings and the ongoing challenges posed by migration.
This investigation by the DOJ not only addresses immediate concerns with specific hotels but also signifies a broader inspection of the city's policies and practices in accommodating a vulnerable population under complex circumstances.