In a recent review of city records by the Daily News, it has emerged that two top executives at a philanthropic organization that sponsored NYC Mayor Adams' recent trip to Israel have significant business and lobbying interests in relation to his administration. These executives were identified as Marc Rowan and Eric Goldstein, the chairman and CEO respectively, of the United Jewish Appeal-Federation of New York (UJA).
Adams' travel and stay in Israel was funded by the organization and expended a total of $4,857 on his airfare, accommodation, and food, according to Emily Kutner, the UJA's spokesperson. Alongside the mayor, six of his administration officials were also aboard the trip, confirming that the organization forked out the same amount per person, totaling $33,999, including Adams’ own expenses.
While some watchdogs deem this sort of financial arrangement to constitute a glaring conflict of interest, it does not appear to breach any city ethics laws which permit public officials to accept free trips from third parties under certain conditions, much to the ire of John Kaehny, head of the Reinvent Albany watchdog group. Kaehny stressed that such loopholes should be addressed by lawmakers in order to stem potential conflicts of interest.
Eric Goldstein's ties include lobbying top members of Adams’ administration for city funding, and Marc Rowan is leading a major private equity firm that has been tasked with managing hundreds of millions of dollars in the city's public pension funds.
Adams' critics argue that these sponsored trips can be misused by influential entities to gain favor and influence official actions. Kaehny admits that these trips can equip government officials with valuable insights necessary for implementing policy and city governance. However, according to him, if these trips are genuinely meant to serve governmental purposes, taxpayers should foot the bill.
The allegations of conflict of interest have been strongly deflected by Levy, Adams’ deputy mayor, who insists that Adams' chief counsel, Lisa Zornberg, endorsed all funding details to ensure transparency and compliance with ethics regulations.
UJA also confirmed that they sought pre-approval from their own counsel before footing the bill for the Mayor's travels. Emily Kutner, UJA’s spokesperson, expressed pride in having arranged this educational trip for Mayor Adams, emphasizing that it merely continued a longstanding tradition of New York City mayors and other elected officials visiting Israel.
Despite the assurance of complete transparency, reports allege that the city Conflicts of Interest Board, the body which enforces local ethics laws, was not consulted in advance concerning the Mayor's sojourn.
In addition to his chairmanship of the UJA, Rowan is also the founding CEO of Apollo Global Management, notable for being one of the world's most significant asset management firms. The company manages over $726 million in assets for the New York City Employees’ Retirement System, the municipal government’s largest public pension fund.
Despite the existing guidelines that limit campaign contributions by individuals in influential positions, such as Rowan, there is no recorded evidence of Rowan having made donations to any of Adams’ political endeavors.
Eric Goldstein, CEO of the UJA, also accompanied Mayor Adams on the trip and has been caught on camera in many of the Mayor's official images. Goldstein's lobbying activities, including his efforts to secure city funding for UJA-sponsored holocaust survivor services, underscore his intricate business dealings with the Adams administration. Moreover, Goldstein has reportedly hired some of the city's top lobbying firms to further UJA’s interests with Adams’ administration.
This is not the first time a mayor of New York City has faced scrutiny for accepting free trips. Former Mayor de Blasio was criticized for his acceptance of a trip to Israel sponsored by a Brooklyn-based entrepreneur back in 2015. This trip also raises additional questions considering Adams's previous record of accepting gifts from the governments of China, Turkey, and Azerbaijan while serving as the president of Brooklyn borough, sparking concerns from human rights and government watchdogs back in the 2021 mayoral campaign.
