Federal prosecutors have alleged that Julio Medina, the founder and CEO of Exodus Transitional Community in New York City, accepted $2.5 million in bribes to direct $51 million in COVID funding to two individuals. The nonprofit, which aided in placing inmates in hotels during the pandemic to reduce jail populations and combat the spread of COVID-19, received $122 million in public funds for this initiative. However, prosecutors claim that a significant portion of these funds were funneled to businesses owned by co-defendants Christopher Dantzler and Weihong Hu in exchange for kickbacks.
Allegations include Dantzler and Hu purchasing properties for Medina and making luxury car payments on his behalf, totaling $2.5 million. Additionally, Hu’s company provided car payments for Medina and catered food services at the hotels operated by Exodus. Dantzler’s business, despite receiving funds from Exodus, was purportedly not a licensed security company and did not provide the promised security services.
The trio faces charges of wire fraud conspiracy, honest services wire fraud, and conspiracy to violate the travel act. If convicted on all charges, they could be sentenced to up to 45 years in prison. During their arraignment, bond amounts were set at $250,000 for Medina, $20 million for Hu, and $750,000 for Dantzler.
Brooklyn US Attorney John J. Durham condemned the defendants’ actions, stating that they exploited the pandemic to enrich themselves. Defense counsel for Hu has argued that she should be considered a victim in the case rather than a co-conspirator.
Lawyers representing Medina and Dantzler did not respond to requests for comment on Friday. Additional reporting was provided by Kyle Schnitzer.
