The NYPD has received a preservation order from federal investigators ordering it not to destroy any electronic files as they target information related to alleged peddling activities at New York nightclubs by the twin brother of NYPD Commissioner Edward Cavan, The Washington Post has learned.
“The federal government is seeking the preservation of all hard drives and servers as they believe there is evidence of fraud on these devices,” a law enforcement official told The Post on Saturday.
Federal agents delivered the letter Friday to the police department's legal affairs office at 1 Police Plaza.
The move follows the issuance of a series of subpoenas targeting senior officials in the Adams administration.
Police sources told The Post on Saturday that the police commissioner's twin, James Cavan, a former police officer, had set up a “nightlife consultancy” and instructed clubs to hire its employees, claiming that “if you hire my security guards, your club will be safer.”
James Cavan also told the club he could call the police chief, his brother or Deputy Mayor for Public Safety Philip Banks if there was a problem, sources said.
So if the city gets “a few complaints about clubs in Midtown, administration and police brass can handle it, rather than having police issue citations or shut down the clubs,” the source said.
Sources said the IRS believes there was actual financial interaction between James Cavan's company or other companies and the club and is now involved in the investigation.
Recently, the federal government subpoenaed cellphones of various police officers in areas with high concentrations of restaurants and clubs.
According to police officials, they seized cellphones from Deputy Chief James N. McCarthy, commander of the Manhattan South Patrol District, which covers all of lower Manhattan; Deputy Chief Kevin Williams Sr., commander of the Queens South Patrol District; and Deputy Inspector Robert Gault, commander of the Midtown North Precinct.
Police also seized cell phones from a lieutenant from the 10th Precinct, which covers Chelsea, and a sergeant from the 5th Precinct, which covers Chinatown, Little Italy and the Bowery.
The Washington Post reported Saturday, citing law enforcement sources, that James Cavan was under surveillance by federal investigators for allegedly working as a middleman for high-end restaurants and nightclubs.
Federal agents searched the home of Police Commissioner Cabana on Wednesday, according to sources. The home of James Cabana was also searched pursuant to a search warrant, according to sources.
Other Adams city officials affected in searches this week included Deputy Mayor for Public Safety Phil Banks, Schools Superintendent David Banks and First Deputy Mayor Sheena Wright, who were served by federal agents who showed up with search warrants and seized their electronic devices, law enforcement sources said.
The federal government also subpoenaed the cell phones of another Adams aide, former NYPD Inspector Timothy Pearson, and Banks' brother, Terrence, a former MTA employee who now works as a consultant, according to sources.
The investigation is being led by prosecutors in the Southern District of New York, who are also investigating top advisers to Mayor Adams in conjunction with a separate investigation into Adams' 2021 campaign finances that began last year, the people said.
Mayor Adams' office has not commented on the details of the investigation, and other officials did not return calls seeking comment.
Police sources said some officers fear the investigation could have a devastating effect on a department that has had problems with police suicides in the past.
“They're worried someone will eat the gun,” the source said.
The NYPD said Saturday it is “aware of an investigation being conducted by the U.S. Attorney's Office for the Southern District of New York involving military personnel, and we are fully cooperating with that investigation.”
