Julio Medina, the founder and CEO of a non-profit organization, along with two others, has been charged with serious crimes like fraud, bribery, and money laundering. The charges come after an investigation revealed that these individuals used their positions to steal millions of dollars intended for helping vulnerable people during the COVID-19 pandemic.
Medina, along with Christopher Dantzler and Weihong Hu, is accused of a complex scheme to divert tens of millions of dollars from a New York City emergency housing program. These funds were meant to provide shelter and support to people in need, especially those impacted by the COVID-19 virus. Instead of using the money for its intended purpose, the three defendants used it for personal gain.
How the Scheme Worked
Medina, who ran a non-profit organization that helped people who were recently released from prison, received a contract from the City of New York’s Mayor’s Office of Criminal Justice. This contract was designed to provide emergency housing for individuals during the pandemic. The organization worked with various hotels to provide temporary housing for these individuals.
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Between June 2020 and December 2023, the organization received approximately $122 million in public funds to carry out the housing program. However, instead of using the money to support the program’s goals, Medina and his associates used it for personal enrichment.
Dantzler and Hu’s Roles
Dantzler operated a security company that was hired to provide security services at the reentry hotels. But, as it turned out, Dantzler’s company wasn’t licensed to offer security services and, in reality, didn’t provide any security at all. He still received millions of dollars in government funds, and a large portion of that money ended up in his own pockets.
On the other hand, Hu controlled two hotels in Queens that were part of the emergency housing program. She also ran a catering company that provided meals to people staying at the hotels. These businesses received millions of dollars in government funds, but they were also part of the fraud scheme that allowed Hu, like Dantzler, to illegally profit from the program.
Kickbacks and Bribes to Medina
Medina, as the head of the non-profit organization, allegedly accepted kickbacks and bribes from Dantzler and Hu in exchange for steering business their way. These kickbacks were paid in cash, as well as in the form of expensive gifts and services. For example, Dantzler and Hu bought Medina a $1.3 million townhouse, financed a $107,000 luxury car for him, and even paid for the renovation of a house worth $750,000.
The indictment also claims that during a meeting in September 2020, Hu handed Medina a stack of wrapped cash as part of the bribe. In exchange, Medina signed off on checks from the organization that totaled over $187,000, which went directly to Hu’s catering business.
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How Much Money Was Stolen?
The amount of money involved in the scheme is staggering. It is believed that Dantzler and Hu provided Medina with at least $2.5 million in cash and gifts. In return, Medina directed approximately $51 million in public funds to Dantzler and Hu’s businesses. This was money that was meant to help vulnerable people in New York City, but instead, it was used to enrich the defendants.
Breaking Down the Stolen Funds
Dantzler’s security company alone received around $21 million in public funds, and Dantzler kept about $9 million for himself. Hu’s hotels received about $12 million, while her catering business raked in approximately $17 million.
The defendants have been arrested and are now facing charges related to their illegal activities. They will be required to appear in court and answer for their actions. While the charges are serious, the law will determine their fate, as they are presumed innocent until proven guilty.
The authorities behind this investigation have made it clear that they will continue to pursue those who misuse public funds for personal gain. The stolen money could have been used to help many individuals in need, and the government is determined to hold those responsible accountable.
