Manhattan bar owner Shamel Kelly has accused James Caban, the brother of former NYPD Commissioner Edward Caban, of trying to extort him by demanding money in exchange for business favors. Kelly’s claim comes amidst a larger investigation into the NYPD’s nightlife unit, with federal investigators issuing subpoenas as part of the widening probe.

Federal agents have also subpoenaed the phones of NYPD lieutenants responsible for handling complaints about bars and nightlife issues. These lieutenants, part of the special operations unit, handle quality-of-life complaints across precincts via the 311 hotline. Edward Caban, who resigned as commissioner on Friday, has not yet commented on the allegations against his brother.

According to an exclusive report by the New York Post, the lieutenants were allegedly instructed to go easy on bars that were clients of James Caban, who is a former NYPD officer and the former commissioner’s twin. A source claims officers were told to “mediate, not enforce” when it came to complaints about these bars.

The source added that complaints included noise disturbances, public drinking, and even people engaging in sexual activity in vehicles, all issues that impact neighborhood life. Kelly, who owns Juice & Moore in Coney Island, told NBC New York that last summer James Caban tried to extort him, asking for $2,500 to solve the police-related issues plaguing his bar.

Kelly’s establishment, which operated as a juice bar by day and served alcohol on weekend nights, had been hit with numerous noise complaints. Kelly said that after seeking help from City Hall, a mayoral staffer introduced him to James Caban, who allegedly promised to mediate the situation with the NYPD for a fee of $2,500. Kelly felt the demand was extortion and refused to pay, which eventually led to the closure of his bar.

The mayor’s office responded by firing staffer Ray Martin on Wednesday for his alleged role in the scheme. On Friday, former FBI official Thomas Donlon was appointed interim police commissioner, following Edward Caban’s resignation. Edward Caban had made history in 2023 as the NYPD’s first Hispanic commissioner and had seen a drop in major crimes, including homicides, during his time in office.