Harlem Developer Jerry Migdol Arrested On Fraud Charges

HARLEM, NY — A prominent Harlem real estate developer has been indicted on fraud and identity theft charges for his alleged scheme to boost now-Lieutenant Gov. Brian Benjamin during his campaign for city comptroller, federal prosecutors announced.

Gerald "Jerry" Migdol, 71, was arrested Friday morning and could spend decades in prison if convicted of the charges, which were revealed Friday in an unsealed indictment.

Between October 2019 and January 2021, prosecutors allege that Migdol orchestrated a scheme to falsify the true sources of campaign contributions flowing to "a candidate for New York City Comptroller," as part of an effort to secure matching funds — the city program that gives money to candidates if they receive enough small-dollar donations. (The indictment does not name Benjamin, but sources confirmed to NBC News that his campaign is the one involved.)

"I need you to do me a favor"

Migdol is a major presence in Harlem, both through his company, the Migdol Organization, and his charities, the Migdol Family Foundation and Friends of Public School Harlem, which donates money to neighborhood schools and hosts events like backpack giveaways.

Questions about Benjamin's campaign finances were first raised last January, when THE CITY reported that three men who were listed as having donated to Benjamin insisted that they had never done so. Another contribution supposedly came from Migdol's grandson: a two-year-old child.

All told, 23 people were shown as having donated to Benjamin's campaign through an intermediary named Michael Murphy — who was also treasurer of Migdol's charity.

At the time, Benjamin was a state senator representing Harlem. His campaign gave back the donations shortly after THE CITY's report came out, and he has not been accused of wrongdoing. (Benjamin finished fourth in the June 22 primary.)

According to authorities, Migdol directed some contributions to be listed under the names of people who never authorized them, and in other cases used the names of people who were later reimbursed for their donations. Migdol personally paid for at least two of those reimbursements, prosecutors allege.

The indictment includes a January 2020 email that Migdol allegedly sent to an unnamed person, which began: "I need you to do me a favor."

"I need a check for $250 for [Candidate-1]'s campaign for NYC Comptroller next year," Migdol wrote, according to prosecutors, who used a placeholder for Benjamin's name. "Come to my office Monday if you can."

The investigation into Migdol was carried out by local prosecutors, the FBI and the city's Department of Investigation. He faces charges of wire fraud, conspiracy to commit wire fraud and aggravated identity theft — each of which carries a maximum sentence of 20 years in prison.

"Buy low and sell high"

In addition to the contested contributions, Migdol personally donated $400 to Benjamin's campaign, records show. His son Aaron also kicked in $400, while his wife Sheryl contributed $2,500.

After Migdol's indictment was announced Friday, Attorney General Letitia James said she would return $30,000 that Migdol and his relatives had given her campaigns since 2019, the Albany Times Union reported.

"Free and fair elections are the foundation of our democracy, and campaign finance regulations are one way communities seek to ensure everyone plays by the same rules," said Damian Williams, the U.S. Attorney in Manhattan, in a statement.

"As alleged, Gerald Migdol and others tried to divert taxpayer dollars from New York City’s matching funds program to a particular candidate based on fraudulent campaign contributions."

Migdol began purchasing Harlem buildings in the 1990s, focusing on converting the neighborhood's picturesque brownstones, according to a 2006 profile. He told the New York Post in 2006 that buildings he had purchased for $200,000 just five years prior were now worth $1 million.

"If you want to make money, the secret is to buy low and sell high," Migdol told the Post that same year.

When he was honored by a neighborhood Democratic club in 2019, Migdol said Benjamin had nominated him for the award.

The Migdol Organization could not immediately be reached for comment Friday, and Gov. Kathy Hochul's office did not immediately respond to an email.