Finger Lakes 1: Former RIOC Leaders Used State Funds to Bury Negative Press, IG Report Finds

Staff

April 3, 2025

A scathing new report from New York State Inspector General Lucy Lang reveals that former executives at the Roosevelt Island Operating Corporation (RIOC) improperly used taxpayer dollars to enhance their personal reputations and suppress negative news coverage, in violation of state ethics laws.

The Inspector General’s investigation found that then-RIOC President Shelton Haynes and then-Assistant Vice President of Communications and Public Affairs Akeem Jamal directed a nearly $170,000 contract to a digital reputation management firm, Status Labs, to manipulate search engine results. Rather than serving the public interest, the goal was to drown out critical coverage of their leadership and flood the internet with paid positive stories.

“Government exists to serve the people, and without transparency there can be no trust,” Lang said. “The use of public funds to silence critics undermines core democratic values.”

Contract Aimed at Suppressing Negative Coverage

The contract with Status Labs, totaling $168,680, was structured just under the amount that would have triggered mandatory board approval. According to the report, the firm’s efforts focused primarily on boosting online reputations for Haynes, Jamal, and other executives—rather than improving RIOC’s image as an organization.

Status Labs measured success based on the appearance of positive search results for individual staffers, not for RIOC. Progress reports tracked the SEO performance of local blogs considered critical of Haynes and his team, the report said.

Conflict of Interest and Ethical Concerns

The Inspector General found that Jamal oversaw the Status Labs engagement despite a clear conflict of interest—he personally stood to benefit from the suppression of damaging articles, some of which were unrelated to his work at RIOC.

Further, other executive staff participated in the campaign by reviewing and approving drafts of promotional articles and sitting for interviews with Status Labs writers tasked with creating favorable content. These actions run counter to the state’s ethics laws and standards for transparency.

Violations Undermine Public Trust

Lang emphasized that the use of state resources for personal gain, especially in an effort to silence dissent and criticism, poses a threat to open government.

“At a time when trust in government is touching historic lows, New York should stand as a bastion for free expression,” she said. “Engagement with New Yorkers will only make state government stronger.”

Investigation Team Credited

The report credits Investigative Counsel Thomas Collery, Senior Investigator Ilene Gates, and Senior Investigative Counsel Jonathan Masters, with oversight from Chief Deputy Inspector General Michele Bayer, NYC Deputy Inspector General Ken Michaels, and Chief of Investigations Ben Defibaugh.

Why It Matters

This revelation comes amid growing public concern over transparency and accountability in state-affiliated entities. Roosevelt Island residents and good-government advocates have raised alarms for years about opaque decision-making at RIOC. This report validates those concerns and raises serious questions about how executive leadership has wielded power—and public money—behind the scenes.