New York Comptroller’s Trip to Israel Raised Ethical Concerns, State Commission Said
A New York state oversight board raised ethics concerns about a trip by state Comptroller Tom DiNapoli to Israel that a local pro-Israel Jewish group sponsored.
The revelation comes amid renewed scrutiny of DiNapoli’s spending spree on Israel Bonds, a financial instrument that directly funds the state of Israel. DiNapoli, the administrator of New York pension funds, is facing his first primary fight in 18 years as comptroller, and the branded, non-tradeable assets have become an issue in the race.
The trip was paid for by the Jewish Community Relations Council of New York, which has a financial relationship to Israel Bonds, the organization that issues Israeli government debt securities in the U.S.
According to an itinerary of the trip, DiNapoli was slated to meet with Israel Bonds staffers.
In a February 2, 2024, letter to the comptroller, the New York State Commission on Ethics and Lobbying in Government approved reimbursement for DiNapoli by the JCRC, but raised concerns that the sponsored trip could create an appearance of potential improper influence.
The ethics commission informed DiNapoli that several commissioners raised concerns “the proposed reimbursement could give reasonable basis for the impression that a person could improperly influence you,” according to the letter, which was obtained through a public records request and shared exclusively with The Intercept.
DiNapoli has been an enthusiastic backer of investing New York pension and investment funds in Israel Bonds. Amid Israel’s genocide in Gaza, efforts by the movement to boycott, divest from, and sanction Israel have gained steam — including campaigns urging divestment from Israeli bonds. DiNapoli tilted in the opposite direction, including a $20 million New York pension fund investment in Israel bonds in the wake of the October 7 attacks.
According to an itinerary of the trip drafted by JCRC and obtained by the group Jewish Voice for Peace New York, DiNapoli was slated to meet with Israel Bonds staffers. In 2024, according to its website, JCRC received financial backing from Israel Bonds — which Jewish Voice for Peace organizers said could hint at a potential improper influence. The Israel Bonds donation was for a float in the 2024 Israel Day parade organized by the JCRC, a spokesperson for the group said. DiNapoli regularly attends the rally, including in 2024.
On Sunday, DiNapoli and other state and local electeds marched in the parade again, joined by an array of extremist Israeli political figures including Bezalel Smotrich, the current finance minister and a far-right champion of illegal settlements.
“By participating in trips organized and paid for by an organization that receives institutional donations and is closely and publicly aligned with Israel Bonds, while simultaneously promoting his office’s ongoing investments in Israel Bonds, Comptroller DiNapoli engaged in a foreign policy function far outside his statutory mandate as a fiduciary to millions of pensioners and public employees,” Lisa Mulleneaux, a researcher with JVP’s “Break the Bonds” campaign, wrote in an October complaint to the ethics commission.
“This represents a serious violation of his ethical obligation under §74(3)(f) to avoid any impression that his official duties can be swayed by outside groups,” Mulleneaux wrote. “At minimum, it undermines public trust in the independence of the Comptroller’s office and the integrity of the state’s investment decisions.”
In a statement to The Intercept, a spokesperson for DiNapoli pointed to the ethics commission’s ultimate approval of the JCRC reimbursement and said his office was unaware of any ethics complaint filed in relation to the trip. (The New York State Commission on Ethics and Lobbying in Government declined to comment.)
In his 18 years as comptroller — and particularly in the months and years following October 7 and the launch of Israel’s genocide in Gaza — DiNapoli has turned the state’s pension fund into one of the largest holders of Israel Bonds nationwide. Since the February 2024 trip, Dinapoli has invested $120 million of the state’s common retirement fund in the instruments, bringing the total investment of state pension funds in Israel Bonds to $332.5 million.
“Officials like Comptroller DiNapoli are responsible for the safeguarding of pension funds through strategic investing that prioritizes the needs of public sector workers and retirees,” said Dani Noble, an organizer with Jewish Voice for Peace. “Instead, Comptroller DiNapoli is investing the NY pension in Israel Bonds — unrestricted loans to the Israeli military and government used for every aspect of violence against Palestinians.”
Israel Bonds in Primary
DiNapoli’s fervent support for Israel Bonds have become a talking point in his primary race, with challengers Raj Goyle and Drew Warshaw both pledging to divest from investments in Israel should they take office.
Running from DiNapoli’s left, Goyle’s and Warshaw’s positions are in line with former New York City comptroller and current House candidate Brad Lander, who chose not to buy new Israel Bonds while overseeing the city’s pension fund.
For the most vocal critics, the moral argument against public investment in Israel Bonds is paramount. Becky Silber, a New York state employee and member of Jewish Voice for Peace told The Intercept that she was horrified to learn in 2024 that her hard-earned retirement funds were being used to send money to the state of Israel.
“When I became aware that my pension fund was being used to fund Israel, I was gutted.”
“When I became aware that my pension fund was being used to fund Israel, I was gutted, honestly,” Silber told The Intercept. “I was horrified watching the news coming out of Gaza. I was checking every purchase in the grocery store to make sure that my money wasn’t funding it. And so to learn that hundreds of millions of dollars of my pension fund were being sent to Israel with no guardrails on how it was spent, that was devastating.”
Critics of the investments also point to a fiscally responsible argument against the bonds. Unlike traditional foreign-debt assets, Israel Bonds cannot be sold on a secondary market and instead must be held until they mature. That makes them a potentially unsound bet, especially considering the rapid decline of Israel’s credit rating in recent years.
“It is hard to justify this as financial prudence or an effective strategy for diversification, especially when many other comparable investments are less risky; more transparent; and more liquid,” said Kaycee Wimbish, a Kingston, New York, resident active with the Mid-Hudson Valley chapter of the Democratic Socialists of America. “These utterly disproportionate investments reveal a hidden political agenda.”
